The issue of auto insurance discount for low number of miles driven each year is certainly fodder for a frugal living thread.
This has been a real PITA for me because I do drive so few miles each year even though I have but a single vehicle on the road. I have been with State Farm my entire life and have a good record with them. But they will not work with me on a discount for my low miles. The one saving grace is that, should I ever need to make a long trip, I would be covered.
As for the State Farm OBD-connected program, I looked into that. I did not find at all encouraging the reviews I saw here on the internet. And I really do not want to be tracked that way, regardless. What I want is a program where I visit my State Farm rep once each year, or once every two or three years if they prefer, and allow her to read my odometer. State Farm is not interested in that approach. They want, instead, to baby sit every aspect of my driving.
We were with State Farm for many years, but switched to Farmers a couple of years ago. State Farm had on our auto policies under mileage: “To Work, School or Pleasure. Driven 7,500 miles or less annually.” Farmers doesn’t offer low mileage discounts in my state.
This was explained to me by my rep (Allstate): they’ll write a policy for any number of miles I tell them, asking for current odometer. Then at renewal they’ll ask for the odo again. If I’m lying they’ll know when I get in an accident, and could deny claims.
The form says that if I don’t return the form they’ll assume 12,000 miles and can increase that by 1,000 per year for every year I don’t return another one.
It’s an excellent, and a very reasonable, question. I guess while all contributors here seek to live frugally, sometimes we fall short of the mark. For me, in this instance, it likely is inertia as much as anything else and, sadly, laziness. I really cannot defend the failure.
I did try, hesitantly, to seek out other auto insurance, responding to a couple of different entreaties from insurance companies promising great deals. But the quotes I received were more costly than what I was already paying State Farm. The added cost put me off and just caused me to become more hesitant.
Part of the problem stems from having, in addition to auto, my home and umbrella insurance with State Farm. They are all, to some extent, bound together. Another aspect is that I have a local State Farm agent. Local agents of other insurers, where I live, are few and far between.
Don’t say failure… the reasons you gave make perfect sense. I’ve attempted to leave Allstate a few times as well but find it hard to get a new insurer to match the loyalty price from Allstate. When they do match or beat it is by so little it isn’t worth it.
In the grand scheme of it I’m sure I waste way more money elsewhere, I pay about $2200 a year for home/auto(2 cars), not like I can get that to $0, and the effort to get it down to even $250 savings annually ($20 a month) is probably not worth it either.
Yes, it’s quite common to get discounts for bundling. We had the same situation. Most places give quotes online, but Farmers didn’t. I almost didn’t call, because I hated having to do it to get a quote. But, switching to them saved about $250 a year! Auto was slightly cheaper for better coverage. Umbrella was about the same. Biggest part of the savings was in homeowner’s insurance.
In my own research there was a time recently when getting home & auto from different companies was cheaper than getting them together from any one company (until Wawanesa introduced a discount and made that combo unbeatable). My umbrella is separate, because Wawanesa doesn’t offer it, and getting all three from any one co is much more expensive, and IMO unnecessary.
I think you are overestimating the value of having a local agent. Personally I find no value in that at all, just an extra cost.
I have another suggestion for this thread. Instead of trying to pinch every penny, can we create a thread on how to earn more income or create income streams ? I know it’s a vast topic but I think we are missing the big picture for minor things like insurance/grocery/cell phone savings.
Liberty Mutual’s discount from 12k to 4k annual usage was over 30%. Cincinnati General’s discount for that same change is barely 15%. I only put about 3k per year on my truck, and I’ve dropped collision and comp.
Someone mentioned lowering un / under-insured coverages. That saved me a nice chunk, as our agent automatically sets those limits to the same as your liability. Our liability limits are high as a requirement of our umbrella policy, and dropping them on the un / under-insured was a pleasant surprise. I owe someone a beer … but not before they drive.
[ I was probably misusing the term limits, and think that “coverage” is a better description.]
I did not reduce the liability coverage. I reduced the un / under-insured coverage. I only mentioned the liability coverage as being a reference point for how high our un / under-insured coverage was. It also may serve as a hint for others with high liability coverage.
Nicely done HG. Generally speaing, exploring umbrella coverage a replacement / supplement for multiple other lines of insurance can be a very promising “living frugally” tactic.
~$100/mo vs. $250/mo for equal liability vs, uninsured motorist on a 100/300 policy. Of course, if we’re damaged seriously by an uninsured driver, we get nothing.