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Auto Insurance Hike

March 1st, 2012 at 07:42 am

Due to our recent move, our auto insurance with Allstate has gone by more than $60 per month! Our Renters policy, however, has gone down by $2/mo.

I have been emailing our new Allstate agent about trying to get the cost down, but to no avail. The agent's 'risk management professional' suggests that since I have two speeding violations and an accident, there is no lower rate. However, I have zero at-fault accidents. So what ever happened to Allstate's Accident Forgiveness deal?

I am starting to think it is not worth it anymore. Now that we have moved, our car should be even more insurance-friendly. It has 44,000 miles on it, and is six years old. It does have a restructured title, but they said it is not any more to insure - they just won't pay as much if it is totaled by me. Also, we are driving even less. Been here almost a month and have yet to even fill up on gas. We are averaging 20 miles per week. That is less than 1,000 miles per year. And, again, we now live in a controlled access area.

But, since we now live in a "more urban" place, it goes way up. Well, maybe I just won't insure the car anymore. It is breaking us. Our leftover after monthly expenses is now $54. Not sure how long we can last on that...

11 Responses to “Auto Insurance Hike”

  1. HouseHopeful Says:

    If you plan on using the car, I would not drop insurance. One accident could wipe you out financially without insurance. HAve you shopped around for rates from other companies? Have you/can you take Defensive Driving, which will give you a discount on the insurance?

  2. MonkeyMama Says:

    We moved from one big city to another (only 100 miles away?) and our insurance doubled. Ugh! A new zip code can significantly affect your insurance, even with a perfect driving record.

    We moved 10 years ago, so I Will say on the plus side, our insurance has gone down every single year since. I think the zip code rating have improved over the years.

    & I understand better why the increase - the drivers are insane here. We travel a lot between here and back home. I have to adjust my driving habits between the two cities. Two totally different types of drivers. I will never understand it.

  3. Joan.of.the.Arch Says:

    Call another company or four! Don't assume you know the factors by which the insurance companies determine their fees. Do not go uninsured unless you are going to decommission the car and not use it...Good luck in your new location. Smile

  4. Frgal Says:

    Yes, I have shopped around online. Every is at least $50 more per month.

    I don't have time to call any insurance companies. And the wife is busy with the kiddo all day. Frown

  5. EarlyRetirementJoy Says:

    How about just dropping everything but basic liability, which is all you need to insure you are meeting your legal requirements? Extra coverages that are not required by law include: Uninsured Motorist, Comprehensive, Collision, Towing & Labor, Rental Car and Collision Deductible Waiver.

    Basic Property Damage and Bodily Injury Liability coverage at the minimum limits mandated by your state (generally somewhere around $15,000 for PD and $30,000 for BI) shouldn't be that expensive. Paying your premium all up front will potentially save you a good amount in payment fees as well.

    That is a much better option than dropping insurance altogether IMHO.

  6. frugaltexan75 Says:

    If you own your car free and clear (i.e. have title) then dropping to just liability might make sense. If you don't own it, then perhaps checking to make sure that you have as high of a deductible as possible could help.

  7. Frgal Says:

    Insurance coverage is set to state minimum for financed vehicles, with highest deductibles.

    We are thinking about selling... It's breaking us.

  8. LuckyRobin Says:

    How good is the bus system there? Maybe dropping the car is doable. Or maybe a combination of using the bus and getting a couple of bicycles with a trailer to haul the baby/groceries. I don't know about your town, but a lot of PNW towns are set up with good bike lanes.

    One suggestion is to find an insurance clearing house (I think that is what it is called). They are agents who deal with several lesser known (and maybe not on the internet) local or state based insurances and they do the looking to find the best insurance for you.

  9. Frgal Says:

    @LuckyRobin Bus system is pretty good, but still has long wait times.

    Target is right across the street, so we will probably get our groceries there if/when we sell the car. Where we shop currently (Grocery Outlet) is two miles uphill, and would just be downright dangerous with a baby. And I don't think it has sidewalks at some parts.

  10. Frgal Says:

    Switched to State Farm. Still $132/mo.

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