Can You Really Save 15% on Your Car Insurance in 15 Minutes?

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Unless you have been living under a rock for the past few years, I am sure you’ve heard this little gecko repeat his slogan hundreds of time. Ever wonder if it could be true? Probably, you have many questions. What could you do to save 15% on your car insurance? Is it really possible to save 15% on your car insurance? Here’s the truth… The real answer is YES or NO. Understanding the basics of insurance pricing/rating is necessary to understand why there are two possible answers.

Everyone who owns a vehicle is required to have auto insurance. Every situation is unique, which means that every insurance company will charge different rates. Because of the many factors involved in rating individual policies, it can be difficult to compare your policy to someone else’s. Insurance companies create rates for liability insurance using a specific set of factors. They also generate rates to cover physical damage for vehicles using a different set. Below is a quick overview of rating.

Car insurance liability rates are usually determined by the following factors: age, marital status, driving record/experience and how far you drive. These are just a few of the many credit options and factors that can be used to help you get car insurance. The above factors can help to determine the vehicle’s physical damage rates, but the actual vehicle details will affect the coverage. The vehicle’s year, make, and model will all impact the physical damage rating. Other factors include features like air bags, anti lock brakes or alarm systems.

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These are two examples of individuals rating insurance quotes and realizing savings.

First, let’s assume that an insured is aged 20, has had a 2 year license, and drives a 2003 Chevrolet Impala. Liability only coverage costs $1,800 per year. In order to save 15%, the insured decides that it will take 15 minutes. This would result in a savings of $225. The insured receives quotes and finds out that some of the rating information on which the policy was based has changed. He/she is now licensed for 3 years, vs. 2 years, and 21 years old vs. 20, respectively. Most likely, the insured doesn’t realize that the old policy was based upon these factors. These new factors allow the insured to get huge discounts and save more than 15%. He/she is not comparing apples to oranges. It’s much easier to save this amount of money because the premium has increased and the baseline information has changed. This scenario is likely to be a YES. You can save 15% or more.

A second example: Let’s say that a married couple of 40 years owns two cars, a Chevy Impala 2009 and a Chevy Silverado 2007. They have no children. The insured is currently covered by a preferred auto company for a premium of $945 per year and full coverage. This is a great price and offers adequate coverage. The insured compares pricing with other companies and finds that there is no change in rating information. They are unable to match the current price. They won’t be able save anything, and certainly not 15% or $146 without changing their policy. This scenario is likely to result in a NO. You can’t save 15% and more. There may be savings, but not likely 15%. Don’t compromise coverage in order to save money. Now you can compare apples and oranges.

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Each person’s situation will be different. The facts will determine how much you save. Remember to compare apples to apples coverage and keep the rating information consistent for all quotes. To save money, it is not worth quoting a new policy that has different information or lower coverage. It will be cheaper, but it will also be more affordable.