Do you think it is possible to save 50 thousand dollars just by comparing car insurance?
This isn’t a prize, competition, or gimmick, but I’m about to show you a real-life example where a family saved a fortune by making smarter choices with their car and provider coverage and cost flow. car insurance.
For starters, it’s common knowledge that there are plenty of highly rated family sedans with premiums under $1,300 a year: Honda Accord, Ford Taurus, Hyundai Sonata, Subaru Legacy.
Well, how did they do it?
Derek and Juanita Johnston, from Miami, Florida, were on a savings drive. They challenged themselves to find a new way to save more money, 50,000 in fact. The thing about saving money is that it’s not about earning more. Many people who earn more, spend much more relative to others, do not value money as much as less wealthy people.
The key is to have the right attitude to save.
Computer programmer Juanita Johnston, 33, and her husband, Derek, a 35-year-old civil engineer, enjoy a nice set of wheels and earn enough to buy a new car every few years, which, like many American families, , they made . But recently, the couple had their second baby in 2009, causing the family’s childcare expenses to double.
The Johnstons decided that their way of handling money needed to change, they decided to take on a challenge to save $50,000, and it started when they contacted an auto insurance comparison website to see if they could get a better deal on their car insurance. car insurance. .
Of course, like most people, they realized that they were paying too much for car insurance, yes, they could make a lot more money.
Not only this, they realized that they could save money in many other places, without having to sacrifice, and were well on their way to a new way of life.
They had just recently paid off the full loan on their 2005 Volvo S60. The family decided to keep the same vehicle they had instead of their usual plan as most of us go, borrow a new loan and buy flashy new wheels again. . The new cash savings they gained from not immediately splurging on their normal habit equaled $700 per month in car payments that they would otherwise be paying their auto loan company if they had just bought a new car model as usual.
Luckily, they were involved in a car accident, and their old car was written off in the accident last December. With their goal in mind, the family stuck to their savings plan and simply bought the same 2005 Volvo S60 for $14,500, the first used car the Johnstons bought, which was fully covered by the insurance payment!
Motivated by their new found savings on the car, the Johnstons realized how many similar savings could be made on other standard household costs a family could bear: They refinanced their mortgage (monthly savings: $300), canceled their professional care garden, and traded premium cable for a Netflix subscription. Cable has too many commercials these days anyway, and not enough shows you really want to watch. With the small family’s new infusion of cash, they have been able to add an extra savings package to their splurge/vacation/investment fund, as well as their retirement funds. Even if they have enough left over for many new luxury items, Derek can even buy a new motorcycle.
After simply shopping for auto insurance put them on the right path to savings, the family is achieving an estimated annual savings of $12,500. Multiply this amount by 4, and you’ll save $50,000 over four years. Not bad, right? Without earning more money, the family saved a lot, all by first using a comparison service and continuing to use those good habits.