Being a parent is expensive! From diapers to dorm rooms: expenses grow faster than the kids do. A nifty trick to managing these unexpected expenses is simply not letting money go to waste. If you were walking down the street and found a hundred-dollar bill on the ground, would you pick it up? Of course you would. What if you found $100 bucks on the ground every month! Only a fool would pass it by, right? Yet that is exactly what you have been doing month after month after month.
What are you talking about?
I’m talking about auto insurance. But before you laugh, consider this: if you’re paying $100 more per month than you could be, you are effectively stepping over extra money every month. Now ask yourself… Why am I doing that?
Take a moment to fill out this survey. See how much money you are leaving on the floor, start picking that extra cash up, and don’t let that money go to waste!
DID YOU KNOW:
Loyalty to a brand name can cost you? The “Set it and Forget it” mindset can be a serious fault on any money savvy individual. Instead of just allowing your policy to renew every year, make sure you take the time to do comparison shopping!
The AAA’s Your Driving Costs study in 2020 found that the average CTOO (the cost to own and operate) in 2020 was $9,561 for a model vehicle that year. The average cost for insurance on sedans sat at $1,245, a decrease from $1,251 in 2019. These AAA insurance costs are estimates that are based on full coverage policy for drivers who are under 65, have more than six years of driving experience, have had no accidents, and live in a suburban location. The coverage is for a policy with $25,000 medical, $100,000 property, $25,000/$50,000 uninsured/underinsured motorist coverage, $100,000/$300,000 personal liability, with a $500 deductible for collision and comprehensive claims. These figures are not comparable with the National Association of Insurance Commissioners’ auto expenditures data, seen below.
Average Expenditure for Car insurance from 2009 – 2018
| Year | Average Expenditure | % Change |
|---|---|---|
| 2009 | $786.65 | -0.5% |
| 2010 | 789.29 | 0.3 |
| 2011 | 795.01 | 0.7 |
| 2012 | 812.40 | 2.2 |
| 2013 | 841.06 | 3.5 |
| 2014 | 869.47 | 3.4 |
| 2015 | 896.66 | 3.1 |
| 2016 | 945.02 | 5.4 |
| 2017 | 1,006.33 | 6.5 |
| 2018 | 1,056.55 | 5.0 |
Source: © 2021 National Association of Insurance Commissioners (NAIC).