Staying Accident Free Pays Off

Our auto insurance through Allstate renews every six months. They send out a new policy with insurance cards and let us know how much it will cost.

Like everything else it usually goes up.

So I was very pleasantly surprised when I saw it going down, by about $25 per month.  Upon further inspection, I saw that everything stayed the same on the coverage, but that we had moved from Premier to Premier Plus status.

I contacted my agent and she confirmed that we got this status after having not filed a claim for five years.

That’s pretty cool.  Of course, on the flip side, if you figure that for the last five years they’d been getting an ‘extra’ $25 per month, they made back $1,500 out of whatever claim it was I had last filed.

But, I digress.

I also saw that they have a new program where if you pay up front, we qualified for an extra $10 per month discount.  So, I decided to do this.

Saving an extra $35 per month is pretty nice.  Right now, I’m still allocating the monthly amount toward our insurance ‘sinking fund’ as before just because I don’t want to rely on getting this discount, only have the cost come back should we ever need to file a claim.

Now, the trick is to stay accident free.

14 thoughts on “Staying Accident Free Pays Off”

  1. My car insurance is an exorbitant price – I’m talking $4,000 per year – because I got into a fender bender when I was 19, then freaked out and ditched my car for a couple years because I was making $10/hour and couldn’t pay for that, tuition, and living costs. I get my accident free discount when I get my normal rate, but that won’t happen for awhile – I’m so excited for when it does though! It will almost half.

  2. Any little bit of savings helps, right?

    I can’t hear or read anything about Allstate without hearing Pedro Cerrano’s voice in my head. Seriously, as soon as you said Allstate, his voice narrated your whole post.

    • I’ve been with Allstate for over fifteen years and have had few complaints. We got discounts because we have our homeowners policy through them as well.

  3. Wow $10 a month for paying up front? that’s pretty good. I put a claim in once with my insurance company, and my rates went up by so much that they would have made back the money they paid for my accident in 6 months. I ended up switching carrierrs

    • There’s obviously some cut off where it would make sense to just pay for the repair yourself. Not sure what it is but if we do get in a fender bender it’s definitely something to consider.

  4. Nice savings! We combine our homeowner’s and auto insurance policies to save a little bit. Every bit helps right?

  5. i have heard that those “declining premium” insurance policies often have a premium that you have to pay in order to be eligible for the ‘accident free’ bonus..

    i have been with state farm for year and years, and my rates seem fairly low (under <$100 for my wife and i combined), but i haven't had an accident since i was 16. i kinda wish my insurance company would reward me even further

    • That’s pretty good. We’re in a no-fault state so $125 a month seems low but I know it’s higher than national average.

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