Savvy Insurance

Start with legally required and catastrophic-loss coverage, then add layers only where your specific exposure justifies the premium. Auto liability is mandatory in 49 states (New Hampshire excepted), and lenders require collision/comprehensive if you finance a vehicle.

Step 1: Pull your current declarations pages (the summary sheet in each policy) and list every coverage line, limit, and premium. Step 2: Raise deductibles on auto comprehensive/collision and homeowners to the highest amount you can pay from emergency savings—moving from a $500 to $1,000 deductible often cuts premiums 15-25%. Step 3: Request quotes from three competitors (use independent agents or direct writers like Geico, Progressive, State Farm) with identical coverage limits. Step 4: Ask your current carrier for available discounts: bundling home and auto saves 15-25%, paid-in-full discounts save 5-10%, good-driver or low-mileage discounts vary by state. Step 5: Drop collision/comprehensive entirely on vehicles worth less than $3,000—when the annual premium exceeds 10% of the car's value, you're self-insuring either way. Most people skip Step 2 and Step 5, leaving 20-40% in savings unclaimed.

File only when the loss exceeds your deductible by at least $1,000-1,500, because a single claim can raise premiums 20-40% for three to five years depending on the state and carrier. Calculate the break-even: if your deductible is $1,000 and repairs cost $1,800, you'd collect $800 but potentially pay an extra $300/year in premiums for three years—a net loss of $100.

Carry at least enough auto liability to cover your net worth (assets minus debts), because judgments exceeding your policy limit come from your personal assets—your bank accounts, retirement funds if the state allows, and future wages. The state-minimum 25/50/25 auto policy ($25,000 per person, $50,000 per accident, $25,000 property damage) is dangerously low if you own a home or have significant savings.

How often should I shop for new insurance quotes?

Every 24 months for auto and home, annually if you've had a major life change (marriage, home purchase, new driver in household). Rates vary 30-50% between carriers for identical coverage, and your risk profile relative to the insurer's book of business shifts over time.

Is insurance from my bank or credit union always cheaper?

Not necessarily. Credit unions and banks often partner with a single carrier and offer modest member discounts (5-10%), but you're comparing one option instead of the market.

Do I need life insurance if I'm single with no kids?

Can I get dropped for shopping around and not switching?

No. Requesting quotes does not appear on any record your current insurer sees, and it's legal in all 50 states to compare prices.