How I and you can save a bunch of money on car insurance

Keep your driving record clean

Read my other article on avoiding getting nailed for speeding. For other traffic incidents, try to follow to law of the road and thus minimizing your risks of getting a ticket. Just one small ticket can have the effect of raising your insurance premiums by 20%. Driving records however do not include parking tickets in case you were wondering.

Drop unnecessary coverage

If you’re driving an older car, you might want to consider dropping your comprehensive and/or collision coverage entirely. Do the math. If your car is valued at $1200, do you want to pay an extra $300 every year. (this is just my guestimate) Or if you have a car you are not currently driving call the insurer and change your coverage to what you need it. For eg its winter and you have your fancy sports car in the garage, you could probably remove the liability portion.

Keep your Credit History report clean

Insurance companies use information from the credit bureaus to factor in the prices for insurance. Lower scores will almost certainly raise your premiums.

Multiple Auto discounts

I can’t speak for all insurance companies, but we get a nice “multi-line” discount for carrying multiple policies with a single company. We actually have two car policies, our homeowner’s policy, a personal articles policy (for my wife’s engagement and wedding rings) and an umbrella policy all with the same company.

Raise your deductible

If you have the money to pay for it and you are a good driver, increase your deductible.

Ask about other discounts

You might qualify for discounts for being a good student, accident-free, renewing your policy, driving relatively few miles each year, taking a defensive driving course, etc. Be sure to talk to your agent and get what you have coming to you.

Shop around

Assuming that you’re doing everything else right, another great way to save money on car insurance is to comparison shop. You can either call around to local agents, or check an auto insurance comparison website. Whatever you do, be sure to buy from a reputable company so you won’t run into any problems if/when you file a claim.

So there you have it… Six simple tips for saving money on car insurance. If you have any further suggestions, please be sure share them in the comments.

Frugality vs Utility

While a lot of us would agree that frugality is good, and a lot of people need to be frugal during periods of economic risk, there are still good reasons to spend a little bit more than you absolutely have to.

I’m talking about utility. What is the value of the item that you purchase? What is it going to contribute to your lifestyle?

Here are some examples to consider:

Purchase Alternatives

Tuna	No Name: Save two or three cents per can. Pungent odor.	Brand: Costs a few extra cents. Normal odor.
Table	Skip It: No workspace. Continue to use coffee table. Inconvenient.	Buy It: Convenient workspace. Extends budget.
Tires	All Season: Save money on winter tires. Less traction. Mediocre on snow. Risk.	Snow Tires: Significant expense. Great on snow and ice. Safety.
Booze	Abstain: Save money. Deal with life au naturel.	Drink Responsibly: Costs money. Relaxing. Promote enjoyable conversations.
Vitamins	Skip It: Eat healty food. Save money. Miss potential benefits.	Buy It: Additional nutrients and antioxidants. Potential health benefits.

If you can’t unclench the wallet (thought I was going to say something else?) and appreciate some added utility from time to time then maybe you are letting frugality get the best of you. I know my frugal nature was born of hard times, but when those times pass you have to take the foot off the brakes and start to think about utility, value for money and even enjoyment of life. I’ve seen this problem in myself and I’ve seen it in some of the visitors to my blog.

I’m not advocating wastefulness, but at the same time we aren’t here on the planet to spend as little as absolutely possible during our stay. Nobody is going to give you a prize at the end for being too cheap to enjoy life.

About Me

I have been very cautious and nervous for the global markets as of last summer 2008. The stock market declines and bankruptcy of certain companies such as Bear Stearns and Lehman Brothers were huge shocks.

On May 1st, 2008 the Dow Jones was at around 13,000, and I came across this book “Crash Proof- How to profit from the coming economic collapse”, I almost ignored it thinking it was some lunatic writer but thank god I didnt. I was curious and the title of the book was so outrageously arrogant, I just had to read a little bit.

It is an awesome book. The facts, the statements, opinions in the book were so very true that it seemed almost like the US Government had almost took us, the public as fools. Peter explains in his book the official data from the government and how misleading they are. Along with that he analyzes the government policies and the dangers of the Housing Bubble.

This book was published in 2007.  He is smart and brave to say Sell when everyone else was screaming Buy Buy Buy.

I highly recommend you to read that book. I dont know if you should buy it now, as its a bit outdated now but you should definately consider reading it.

YouTube Link showing Peter Schiff pointing out his views

Memorable Quotes from 2008

USA- In my adult lifetime, I don’t think I’ve ever seen people as fearful,” -  Warren Buffett

ICELAND - “There is a very real danger … that the Icelandic economy, in the worst case, could be sucked with the banks into the whirlpool and the result could be national bankruptcy,”    – Iceland’s Prime Minister Geir Haarde

Korea – “At times like this, we, both the authorities and market participants, need to think and act rationally.” -  Korean Finance Minister Kang Mn-soo

Russia – “(This is) a large scale financial crisis.    -Russian President Dmitry Medvedev

Great deal but no expiration date.

Found a great deal on Chicken.

Selling for 50% off at my local Rainbow Foods- Eagan, Minnesota.

The only problem was there was no Sell By /Expiration date on it.

I ate it and Im still alive !