Wednesday, March 5, 2008

Car Insurance!

My husband finally found a cheap car (that we could actually afford) to help save money on gas. A friend of his at work sold him a little car for $500. It didn't have any problems only alot of miles and its 14 years old. The guy basically wanted to get rid of it because he had too many vehicles.

We were so excited, hopefully it will save us money on gas and last at least until we can afford something newer.

So today I called to get insurance on it, so that we can bring it home this weekend. We have been through State Farm for 11 years and have never had any problems. My husband has hit a few deer and had a few speeding tickets. We haven't had any wrecks at all and no tickets in four years. We were figuring our insurance may go up about $20-30 a month. Boy were we wrong it was going to go up $80 a month. Even if we dropped collision and comprehensive on the truck and raise the deductible on the car it was only going to be about a $20 difference for six months.

Needless to say we were not happy. I spent the entire morning researching insurance companies and getting quotes on line. Everything else was cheaper. We finally decided on Progressive, we used our current policies and got almost exactly everything that we had through State Farm for $70 a month less than what they were going to give us. That means only $10 a month for the new (old) car. We can handle that. Paying $80 more a month didn't seem to make much sense, since we only paid $500 for the car in the first place.

We hate switching companies, but State Farm just wasn't very affordable. They said the reason it was so high was because the car is a Nissan, and it doesn't have any good driver discount built up on it yet. That doesn't make any since to me. It looks like the good driver discount would apply to the driver, not the car. I don't know to many cars that wreck themselves:)

Anyway I'm not trying to sway anyones decision about their car insurance. But what I can say is that if you haven't checked different quotes lately, you may want too. You never know, you may save quite a bit of money. When your on a budget every little penny counts.

1 comment:

Chile said...

Yeah, I'm beginning to wonder if State Farm is no longer the one for us. I've been with them since I got my Driver's License but their rates are prohibitive!

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