Insurance costs are skyrocketing, and it’s taking a toll on family budgets. If you’re a struggling to keep your family safe and secure, this article is for you. Learn how to take control of your insurance costs and protect your loved ones without breaking the bank.
In this post
- How I Shopped Around for Better Insurance Rates
- The Spreadsheet That Saved the Day
- Why Annual Insurance Reviews Are A Must!
- What You Can Do Today
- Frequently Asked Questions
- Related Financial Preparedness Content
- Build Your Grab & Go Binder Today to Reduce the Stress of Organizing Important Documents
- Final Thoughts
About a week ago, our insurance agent sent us renewal proposals for our homeowner’s and auto insurance. He shops our policies around every year, and for the past ten years, the rates have been mostly stable.
But this year? The rates almost made me cry.
Read it and weep with me:
- Safeco Homeowners Insurance: $9,416
- Safeco Auto Insurance: $5,584
Yikes! That meant our monthly mortgage payment would increase by $330. We calculated that our homeowner’s policy had increased 73% over 2024, and the auto policy went up even though we had switched from three cars to two.
I panicked.
Our agent assured us these were the lowest rates among all his providers, but I wasn’t ready to give up. Inflation has hit us all hard, and insurance costs are no exception. But instead of accepting this massive increase, I rolled up my sleeves and got to work.
How I Shopped Around for Better Insurance Rates
The first thing I did was turn to my local mom’s group on Facebook. I posted about my situation, asking for recommendations for agents and companies. Within minutes, I had a flood of responses—including lots of “We got hit, too!” comments—and a list of agents and companies to call.
I got to work making phone calls.
The Scary Start
The first agent I contacted told me we’d need to cut down several trees on our property, repair or replace our driveway, and that our home generator would add extra costs to our policy. That was a wake-up call about how detailed some policies could be—and honestly, it scared me!
Exploring Online Options
Next, I checked rates from AAA, Costco, and Allstate. Costco’s premium looked promising at a little over $4,000. That gave me some hope.
However, Allstate required installing a driving app to track behaviors like speed for a discount. No thanks.
The Spreadsheet That Saved the Day
I created a detailed spreadsheet to compare coverage options, limits, deductibles, and premiums. This helped me organize all the information I gathered from calls and online applications. Here’s how I set up the spreadsheet.
Page 1: Personal information
I quickly found out that I would need to have on hand:
- the ID numbers for each vehicle (VINs),
- our driver’s license numbers,
- and dates of any incidents over the years.
Not every company asked for these, but since a few did, it was easier having them on hand.
Page 2: Current insurance details & comparisons
On this second spreadsheet page, I entered the policy details for homeowners and auto coverage with our current insurance company, Safeco. This gave me specific numbers so I could compare apples-to-apples as other proposals came in.
Then, a few lines down on the spreadsheet, I entered information about each company and/or agent I spoke with. I entered their name, phone number/email, and notes about our conversation.
As I began to get proposals, I entered that date, too, again in sections “Homeowners” and “Auto”. At a glance, I could compare coverage and prices. To my old agent’s credit, he offered to review any proposals I received and compare them with the Safeco policies.
Two days into my project, a helpful State Farm agent sent over their proposals.
And guess what? State Farm offered us the same coverage for nearly $7,000 less per year!
We had been long-time State Farm customers in Arizona, so we were familiar with the company and comfortable making the switch. What a relief!
Why Annual Insurance Reviews Are A Must!
This experience taught me an important lesson: the right insurance is crucial. Every family’s risks and needs are different, and your current policy may not reflect your situation.
Some of the most heartbreaking stories I’ve read following natural disasters come from people who:
- Didn’t have insurance.
- Thought they had coverage but hadn’t reviewed their policies in years.
Don’t let that be you.
Stay Familiar With Your Policy
Right now, an elderly friend who is bedridden is having to fight her insurance company to either repair or replace her back fence that was knocked down during Hurricane Beryl almost five months ago! Know what your insurance policies cover, and you’ll be less likely to have a fight on your hands in case of a loss.
Make Adjustments to Coverage
Just as our lives and lifestyles change, our insurance needs change, too. You may have built up a valuable collection of something over the years, but if that collection doesn’t have the right amount of coverage, you’ll be out of luck if it’s stolen or otherwise destroyed in a fire or disaster.
Also, our family units change. You may no longer need coverage specific to having a home-based business or maybe you’ve downsized what you own. Think about how your lifestyle and family size has changed and let your agent or company know when you review your policy and shop around with other companies.
Add or Remove Special Coverage
You may want to add additional coverage if you have items in your home that are especially valuable. First, check the current coverage to see what your current limits are. You might need additional coverage for things like:
- Jewelry and watches
- Art and antiques
- Collectible coins and stamps
- Firearms
- Sports memorabilia
- Musical instruments
- Wine collections
- Rare books
- High-end electronics and tech equipment
For these types of items, it’s important to have a current appraisal done. Insurance companies may require this in some cases to avoid fraudulent claims.
Keep appraisals and documents handy, both in a digital and physical form. If you have a Grab-and-Go Binder, this is the ideal location to store that data. The one I’ve designed has everything you need for vital docs, medical records, and a lot more. When you consult with your agent or company, they might advise a separate, specialized policy, depending on the value of these types of possessions.
Inside my Survival Mom Sisterhood, I’ve issued an Insurance Check-Up Challenge to help members take control of their coverage. I’m sharing that challenge with you, too! You can click here to download the printable.
What You Can Do Today
If you haven’t reviewed your insurance policies in the last year, now’s the time. Here’s your game plan:
- Get Quotes from Multiple Sources: Even online tools like Costco or AAA can give you a quick starting point.
- Create a Spreadsheet: Compare coverage, deductibles, and premiums to see what works best for your budget and needs. Have things like vehicle VIN numbers handy as well as each driver’s license number.
- Don’t Be Afraid to Switch: Staying loyal to one company may not save you money.
- Set a reminder for next year. I plan to do this every year in mid- to late-November once I get State Farm’s premium amounts for the next year.
This time around, State Farm was the best choice for us. Next year? I’ll be shopping again.
Frequently Asked Questions
I hadn’t done this in years, but it was just a matter of letting our current agent/company know we were switching and the date for the switch. He sent over a document via DocuSign via email to verify the cancellation date of those policies. The State Farm agent scheduled the new coverage to go into effect on that same date.
Most insurance companies prorate your premium, meaning they’ll refund the unused portion of what you’ve paid for coverage you haven’t used. For example, if you paid for a six-month policy and cancel after three months, you’ll generally receive a refund for the remaining three months. Before cancelling, ask your agent or insurance company to verify there aren’t any cancellation fees.
Homeowner’s insurance coverage for water damage only covers damage if the water originates inside the house — something like a water pipe breaking or a sink or toilet overflowing. If the water comes from outside the home, that damage isn’t covered by homeowner’s. You’ll need flood insurance for that. Talk with an insurance agent to see if you need flood insurance. Earthquake insurance is similar in that you’ll need a separate policy. Again, talk with an agent about this.
In both cases, it’s vital to know what is and isn’t covered, and be prepared for higher deductibles, especially for earthquake coverage.
The rates are the rates, however, you can lower your premiums by bundling policies, maintaining good credit scores, increasing deductibles, or by lowering certain limits, such as those for uninsured/underinsured motorists. If you have student drivers, many companies offer discounts based on good grades or completing a driver’s education course.
Related Financial Preparedness Content
- 50 Surprising Ways to Cut Household Costs
- Prepare for Your Own Death: A Last Act of Love for Your Family
- Save Over $1300 with This Simple 52-Week Challenge
- Extreme Frugality: When the Money Situation is Dire
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Final Thoughts
With a little effort, you might save hundreds—or even thousands—of dollars, all while ensuring you have the right insurance coverage for your family’s needs. It’s absolutely worth a few phone calls!