How much do you spend on groceries each month? Gas? Cell phones? Car insurance? I recently made a list of my monthly expenditures in preparation for a meeting with my financial advisor. How did my list look after completing this not-so-fun task? Like most people, my home mortgage was at the top. Groceries and gas were also right up there. However, I was surprised to see car insurance towards the bottom, below cell phones and Internet!
Interesting, isn’t it? For something that has a reputation for being expensive, is it really when compared to your other living expenses? Consider this, according to CarInsurance.com, the average person will spend about $94,000 on auto insurance during their lifetime. How does that compare to your iPhone or a daily stop at Starbucks? You might be surprised…
- Using a 32GB iPhone from age 21 to 75, buying a new phone every six years, will run you about $72,000. Compulsive upgraders and heavy data users would pay even more.*
- Hitting Starbucks every morning for a $4 latte will cost $88,000 over 60 years. Making your coffee at home will almost cover the cost of your car insurance for life.*
Most people can’t “live” without their cell phone or daily dose of caffeine. I hope the same is true of car insurance. The recession has made us all a little savvier with our money, but don’t compromise on coverage to save a few bucks. If you’re shopping or considering buying online, get a quote from a knowledgeable professional in the business. A Trusted Choice agent is a good place to start!
Here are some great ways to save money on car insurance :
- Going paperless and paying online (and on time) could earn you a premium credit.
- Carrying higher deductibles on comprehensive and collision coverage could save you money.
- Completing a driver training or accident prevention course can be a great way to learn safer driving habits and save money.
- Many carriers offer a discount to young drivers earning good grades.
- Vehicles with Anti-Theft and Passive Restraint options can reduce your premium.
Remember, discounts will vary by insurance company, so contact an independent agent today to learn more about which discounts are available to you. For more on insurance discounts, you can check another of our blogs, Insurance Discounts with No Coupon Required.
So what do you think? If you had to choose, could you give up your vanilla latte each morning for the security and protection of insurance?
*Vallet, Mark. “Your lifetime car insurance bill: $94,000.” www.carinsurance.com. Nov 29, 2012.