Things happen in life where you realize you need to cut back on expenses. This happened to me last summer. Long story short, my monthly expenses were going to increase by about $150 a month. Although $150 a month doesn’t seem like a whole lot, times that by 12 months in a year and you have a yearly increase of $1800. Once the increase of $1800 per year really sunk in, I realized I needed to do something to lower my other expenses.
My first and best attempt at cutting back on my expenses was tackling my auto insurance. Despite my clean credit report and driving record, my monthly policy was $135. I immediately got to work to try to lower the bill.
First, I called my existing insurance company provider to see if they had any additional discounts. I explained my financial situation was changing and was looking to cut costs any way I could. After searching and searching, the representative claimed that I had the best deal possible.
My next step was to contact a friend who recently opened up an insurance agency in my area. Once I told him my current monthly rate, he immediately said that his agency would do whatever possible to get me a better deal. After a 20 minute phone call, my car insurance was lowered to $93 per month for comparable coverage.
Moral of the story, it is always important to shop around for deals. Just one phone called saved me $504 annually. I was able to get a bundled package with my renters insurance and auto insurance which saved me an additional $2 per month on my renters insurance. After a couple phone calls, I successfully saved $528 per year on my auto and renters insurance. Not bad for a Monday afternoon.
I challenge you to contact your current insurance policy holder(s) to see if there is a discount out there for you. Have you tried this in the past? What type of discount were you able to receive?
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