Car Insurance – Looking for a new provider
Car insurance is a necessary evil if you drive. I have had car insurance most of the thirty-ish years I have been driving, but I have never filed a claim. As much as I’ve paid for car insurance, I probably could have bought a very nice car. I think I have been made the insurance companies a profit.
All of my cars have been used. Most of my cars have been older. Only one of my cars had full coverage; the 1997 Ford Escort had full coverage until my one and only car loan was paid off. As soon as I had the title in my hands, I dropped the coverage to the state required minimums.
I’m not complaining. I’m glad I never had a claim, because that would mean I had been in an accident, with a damaged car, or injured body. However, I still feel like the insurance companies have gotten the better end of the deal.
The reason for this post is because I have been researching car insurance. Our six month policy is up for renewal. I have been with Progressive the past two years. We ended up with them because of a crazy incident, which I may talk about some day. I wanted to see if we had the best coverage for the money.
To give you some background, I’m 44, R is 43, and we both have good driving records. Currently, we have three vehicles – a 1997 Ford Escort, a 2001 Ford Windstar, and a 2006 Honda Odyssey. R is a home-maker, home-schooling our youngest, so she doesn’t drive much. My day job is 5.5 miles one way, so I drive less than 3,000 miles per year commuting to work in my Escort.
I do have my “side hustle” DJ business, but I only drive the Windstar if I need all my gear; I believe I drive it less than 5,000 miles per year. The Windstar currently serves as a “portable storage unit” as much as it does a “vehicle”. I can fit a basic DJ rig in my Escort, which gets 30+ MPG, compared to the 18+ MPG of the Windstar. Most of my events are close to home.
I add less than 12,000 miles per year to the Escort, including my commute and DJ business. We have the state required minimum car insurance coverage – 25/50/25. In case you are not familiar with what that means (I wasn’t before I started researching), following is an explanation:
- Bodily Injury (BI) – $25,000 per person – If we were at fault & injured someone
- BI – $50,000 per accident – if we were at fault & injured more than one person
- Property Damage (PD) – $25,000 per accident – if we were at fault & damaged stuff
- No Uninsured Motorist (UM) BI – if an uninsured person hit & injured us
- No UM PD – if an uninsured person damaged our car (or drove through our house, etc)
- The UM coverage is supposed to protect you from hit-and-run drivers also. This add-on to your car insurance policy protects you, for example, if you came out of a store to find that someone had backed into your car in the parking lot and left without leaving their information on your door. Your car is damaged, and you have no way of knowing whose insurance to file a claim on.
We currently pay $663 per six months or $1326 per year with Progressive. Flo is either annoyingly cute, or quaintly quirky; neither is enough that I feel any loyalty to her company. Additionally, the Katie Fisher incident is enough to cost them my business. That is not how I want my car insurance provider to treat my family should something happen.
I’m looking at GEICO, who I used to have many years ago. Like Flo, the Gecko is either cute or quirky. However, I currently work for a company which is owned by Berkshire, which also owns GEICO. So, I get employee pricing discounts on car insurance. I set up three plans on the GEICO website: Plan 1 –
- 30/60/30 – more than the state mandated minimums for car insurance
- UM BI – none
- UM PD – none
- $498.90 per six months – savings of $164.10 per six months or $328.20 annually
Plan 2 –
- 50/100/30 – double the state mandated BI, and a little more than the state mandated PD
- UM BI – 50/100
- UM PD – 30,000 / 250 deductible
- $670.50 per six months – adds $15 per six months or $1.25/month to our current Progressive car insurance bill, but the coverage is better
Plan 3 –
- 300/300/100 – several times the current coverage amount
- UM BI – 50/100
- UM PD – 30,000 / 1,000 deductible
- $766.50 per six months – adds $103 per six months or $17.17 per month to our current car insurance cost, but coverage is much greater
I think I will apply for coverage at GEICO, with Plan 2. It improves our coverage, for approximately the same amount we are currently paying for car insurance. This means our budget should not be negatively affected (by much… it is $1.25 per month more, so I guess that is a “negative affect”. 🙂 I forwarded this information to R, to see if she had any comment. She simply said, “OK”, so I guess I will contact GEICO and see about setting up the car insurance policy this week. My Progressive policy renews on 9/5, so I don’t want to wait. What car insurance company do you use? How long have you been with them? What was the main selling point for you?