Are you, like most of us, looking for innovative ways to save money? Then maybe it’s time we look for recurring expenses that can be reduced. One overlooked expense is car insurance. If you’ve had the same car insurance for over one year, you are likely eligible for a new, discounted rate which could help you save hundreds of dollars on coverage.

How I Saved Money on Car Insurance

            For example, I’ve held Progressive insurance for approximately five years now. I negotiated a slightly lower bill two years ago but still feel like I pay too much. When shopping for homeowner’s insurance, I received a new estimate for car insurance. Lo and behold, it was a whopping $500 per 6-month period less than my current policy – and it was still with Progressive!

The reason my quote had gone down is due to a few reasons:

  • I moved to a lower income and less populated area (from Colorado to South Dakota)
  • I have a very clean driving record (my habit of knocking bumpers stopped in high school, thankfully)
  • I signed up for their Snapshot driving app (it monitors driving and can make you eligible for lower rates)
  • I’ve been purchasing insurance from the company for years

These aren’t incredibly high parameters, which is why I know there are millions of people out there who could likely shop for cheaper car insurance today and save $$. I will admit, shopping for car insurance and receiving quotes takes time. But, if you’re willing to put in the effort and hang out on the phone for 20-30 minutes while your rep talks your ear off to cancel your current policy,


  • Confirm with your current auto insurance company that there is no penalty or fee to cancelling your policy
  • Purchase new car insurance before you cancel your old policy to avoid a “lapse” in your history which can result in higher fees
  • Take your time! Shop around and really find the best deal. It’ll be worth it.
save money car insurance

This is my tip of the week for saving money. Let me know your thoughts by commenting below.

Mandy Froelich

You deserve to create a life you love.