A Few More Expenses – Unremarkable, But Still Savings Opportunities

Even airplanes need roadside assistance sometimes. In this case, another student had left the master switch on and the battery was dead. As a result, the maintenance guys had to tow the plane over to the battery machine so they could jump it for us.

I haven’t done an annual expense post in a while and the year is quickly winding down, so I need to get back on track. The next three expense categories on the list, Memberships, Other, and Supplements, are pretty uninvolved, so I’ve decided to combine them into a single post. Over 2017 and 2018, I averaged $300, $2400, and $100 in these categories, respectively.

Of the $300 I averaged on memberships, roughly $180 a year went to my gym membership. It’s a 24 Hour Fitness membership I got from Costco. They usually sell a two year membership for $400, but it occasionally goes on sale for $360. And that’s when I pulled the trigger. As a bonus, based on my research, it appears that once my membership expires, I’ll be able to repeat the feat. The offer is only for people who are not current members at 24 Hour Fitness. However, according to many forum posts, you can attain that “not a current member” status in a single day. I will certainly give it a try once my membership expires next year. 24 Hour Fitness isn’t the nicest gym I’ve ever used. Many of the locations aren’t all that clean or well kept up. Don’t get me wrong; they’re not terrible. I’d say they’re squarely mediocre. However, they are cheap, they have all the necessary equipment, and they have tons of locations all over in Houston, Dallas, and San Antonio – a huge value to me given my frequent traveling. 24 Hour Fitness also has locations in many other states so I recommend checking them out if you’re looking for a cheap, decent gym with many locations.

The remaining $120 a year was split evenly between my AAA membership and my Costco membership. AAA seems to be a pretty decent company and as someone who travels by car a lot, I’m likely to need the service eventually. When I do, based on my research, I expect to save a significant amount of money on one roadside service or another. Even if I don’t, I appreciate having some peace of mind. I have this instead of a similar service through an insurance company because I don’t trust insurance companies and like most people, my premiums are high enough already. Maybe using the service wouldn’t be treated as a claim and everything would be fine. But I wouldn’t want to bet on that with an industry that is well known for both jacking up premiums and screwing its customers at every possible opportunity. I tend to be a little cynical for sure, but I haven’t found many more crooked industries than insurance and will do whatever I can to avoid letting it take advantage of me even more than it already has, and still does. AAA has been around a long time and has a pretty decent reputation. That’s enough for me until my experiences indicate I should change my view.

As for the Costco membership, I’ve written about my favorite store many times on this blog – in fact, it saved me money in both of the other categories in this post and no, that was not intended. I would estimate that the $60 membership pays for itself at least half a dozen times per year. It is actually likely more than that. It would be difficult to overstate the value here.

I avoid putting expenses into the Other category if I can, opting instead to add more specific categories as necessary. When I do use it, it’s for something I don’t expect to do often. In the case of 2017 and 2018, I made a cross country move from Wisconsin to Houston, Texas. My employer generously paid for most of it. However, as part of the process of recovering psychologically from my 2016 divorce, I decided to get rid of almost everything I owned and replace it once here in Texas. It wouldn’t have been right to ask my employer to pay for that since it was voluntary, although they would have if I had. It wound up costing me about $4800, mostly on some middle of the road quality furniture, resulting in an average of $2400 over the last two years.

As for supplements, I don’t use many at this point in my life, although I’ve used almost all of them over the years. So this category used to be a much bigger one. Today, the vast majority of this spending is on protein powder. And I’ve been using less and less of that in favor of ingesting as many calories as possible in real food form. The protein powder I do buy, unsurprisingly, comes from Costco. Their deals are normally pretty competitive, but if you wait for their sale prices and then stock up, you will blow any other options out of the water. And this is coming from a guy who has bought almost every supplement and checked out almost every possible option over time.

That’s it for today. Yes, it was kind of a mundane post. But even here, there is plenty of potential savings if you happen to be overspending in these categories. As usual, I get everything I want, rarely compromise on quality, and pay as little as possible. Overall, it works out to approximately an upper middle class lifestyle for the cost of a lower middle class one. Have a great week!

What I Do About Medical Expenses

I’m going to reuse this picture because I can’t think of a better way to caption “What I Do About Medical Expenses.”

Happy Tuesday, folks! I hope you enjoyed your Labor Day. As for me, I made a point of NOT laboring and instead, I enjoyed some relaxation time. I’ve been going very hard lately so I was due for some. Anyway, today I’m going to talk about medical expenses. Over 2017 and 2018, I spent an average of $900 in this category. Keep in mind that I don’t include health insurance in this number since I already accounted for it in my insurance category. Most of the spending that brought that average up was in 2018 when I spent months in physical therapy working through a herniated disc in my back. I’m very lucky to have good insurance, but that $50 copay per appointment still added up over time. I also sprained my ankle, making it a very unlucky health year for me. I’ve decided to write this particular post in list form for a change of pace. So here are my tips for saving on medical expenses, in no particular order (although the first one is definitely the most important and you can probably already guess what it is).

  • “An ounce of prevention is worth a pound of cure.”

There is no better way to save on medical expenses than to avoid getting sick. This means investing time, effort, and occasionally money consistently. There is a reason this is one of the first posts I wrote on this blog. In a good year, I spend little or nothing in this potentially very dangerous category. And that is no accident.

  • Understand how your insurance and the medical billing system works and mitigate things as much as possible.

Learn about how deductibles, copays, out of pocket max, etc operate and pay attention to them. Occasionally you can do yourself a favor here. For example, if you need something done and the timing is flexible, you haven’t met your deductible yet this year, and you’re close to the end of the year, wait until next year. That way, you’re giving yourself a better chance to meet next year’s deductible rather than simply throwing the spending away on this year’s, which you won’t meet anyway.

Make sure you know something is covered BEFORE you get the service done. As a young lad of nineteen, I had my wisdom teeth removed, foolishly assuming my insurance would cover it. Later, when a bill for a few thousand dollars showed up, I ultimately learned that it did not – at least not in the particular way I had it done. I don’t remember the details now. But as a kid that age, that was a tough financial hit. More on that later.

Also, understand that medical billing is a very inexact science and that it’s done by humans, who do make mistakes. Pay attention to what’s on your bill and if something doesn’t look right, call and find out what’s going on. You will definitely encounter some of the “it’s them, not us” game between doctor’s offices and your health insurer, but every now and again, you can get something resolved and avoid paying for something you shouldn’t have to. Plus, in the process, you will gain a valuable understanding of a system that intimidates a ton of people.

  • Use your life experience to your advantage and apply what I call the 1-2 week rule.

Back in the days when insurance that covered basically everything was commonplace, I would go to the doctor for basically anything that came up – a minor rash, a cold that lasted a little longer than usual, a strange pain in my knee, etc. But somewhere along the line, I noticed a pattern. More often than not, the outcome seemed to be “give it a week or two and come back if it hasn’t improved.” And those doctors usually knew what they were doing since in most cases, no return visit was necessary. Fast forward to today, when many people have to pay at least $25 for an office visit and some have to pay the entire cost, and my approach has evolved. As long as something doesn’t seem serious (I use a combination of feel, past experience, and Dr Google to make that determination), I just self impose that week or two. Whatever the issue is, it almost always goes away – no copay necessary.

  • If you don’t have insurance, there are work arounds.

Most service providers have a cash price, and if you don’t have insurance, you should ask for it. From what I’ve heard, there is some leeway, especially if you’re going to pay up front. And here is a gem on the prescription side: www.goodrx.com. If you’re not familiar with it, give it a try and thank me later. I have no clue how it works, but somehow it does. I’ve even successfully used it when I had minimalist insurance through a very cheap employer that had a deductible on prescription coverage. One other thing. Remember my wisdom teeth mishap from earlier? I didn’t have a few thousand bucks laying around back then. But the doctor’s office was happy to set up a payment plan for me and six painful months later, the lesson had been paid for in full. They didn’t even charge interest, which I thought was very decent of them. From what I’ve heard, this willingness to set up no cost payment plans is common practice.

  • As usual, Costco can help.

If you haven’t heard, Costco’s Kirkland Signature brand is both awesome and incredibly cheap. Since moving to Texas, I suddenly have allergy issues in the spring and the fall. It’s just one of those things. But their nasal spray works wonders for me – and costs about the same for five bottles (enough to get me through probably a decade or so) as the name brand does for one. And this is just one of many, many examples. I would go so far as to say that area of the store is the most underrated of all. Oh. And with most regular household stuff like ibuprofen or that allergy medication I just mentioned, you can pretty much ignore the expiration dates. Sure, the effectiveness may go down slightly over time, but not to a noticeable degree in my experience. I have an entire bathroom closet full of expired stuff that always gets the job done when needed.

There is only one magic bullet with medical expenses: prevention. And it isn’t actually magic; it requires work and discipline. Beyond that, anything else is going to cost money. But there are ways to keep things from getting out of hand. Hopefully there is an idea or two in this post that will help you. I hope your short week is off to a great start and I’ll be back with my regularly scheduled Wednesday post tomorrow.

My Best Efforts to Keep the Insurance Industry From Robbing Me Blind

This expense is one dragon even I cannot slay.

Happy Monday, ya’ll! Here is the latest post in my Annual Expenses series. If you didn’t see the introduction post that summarizes all of my expenses, you can check it out here. I’ve been going into detail on one category each Monday. Over 2017 and 2018, I spent an average of $3000 per year on insurance. To be honest, this category makes me sick since I don’t like betting against myself and have literally never received even close to what I’ve paid in premiums. Not one single year. There is a lot to discuss on this since it includes three subcategories: auto, homeowner/renter, and health/dental. And it is a highly variable expense category since insurance is based on personal factors. But I believe a minimal annual expense would be about $2000. And this is a great topic to go into since my annual auto/renter policy renews in early October and I’m going to be shopping around to try to get just a little bit closer to a reasonable amount – if that is even possible anymore.

I’ll start with health insurance since it is the most important. I’m very fortunate to have a solid plan through my employer that has a very low required contribution of less than $1000 total per year – and that’s pretax. Our dental insurance is less generous and as a result, I even went without it one year. But dentist appointments seem to be much more expensive than they are in the Midwest – about $300 on average versus about half that – so I got back on it. Anyway, admittedly, my minimum annual insurance number above requires an employee friendly setup because if I didn’t have that, it appears I would be paying about $4k total per year for fairly minimal individual health coverage. However, I would then have the advantage of being eligible to contribute to an HSA (health savings account), assuming I chose the right plan. An HSA is the add on you want. A FSA (flexible spending account) is only useful for those who have medical expenses that are both high AND predictable. Unlike an HSA, which is basically a bank account you own (but can only use for medical expenses), a FSA is a tax advantaged, but “use it or lose it” account. So only contribute what you KNOW you will spend or you could easily lose money instead of saving any.

The key with health insurance is really to stay as healthy as possible. It’s not going to be cheap no matter what you do, but if you have high medical costs, it’s going to be a lot worse. This is one of the reasons I said investing in your health is the best investment you could possibly make in one of my very first posts on this blog. This is also one of those areas where you’re going to pay through the nose for having kids, but that’s a whole other topic. Long story short on health insurance, go through your employer if they offer a decent plan and live the healthiest life you can so you can use it as little as possible. Frankly, if this industry doesn’t see dramatic changes over the next decade or so, this country is going to be bankrupt. So I don’t know how in depth it even pays to go into this. It is simply going to be a moving target for a while.

On auto insurance, I’m paying a bit over $1500 a year for a single vehicle, which makes me sick given that I paid just over half that much for two in Wisconsin (and not much more than that for three when I was married). But you only have to spend a day on Houston’s roads to see that the drivers here more than justify that difference. Dallas, San Antonio, and Austin haven’t been much better in my experience, so it’s possible that sky high insurance costs are simply a Texas thing and a well justified one at that. Anyway, nearly half of that is for collision, which you should only have if your vehicle is objectively worth at least $10k in my opinion, and the rest is for liability, comprehensive, and so forth. I have a 100/300 policy and I’m actually likely to increase that and add umbrella coverage in the near future since as my net worth skyrockets, so does my potential loss if I somehow hit one of these aristocrats who drive $400k Bentleys in an area with roads that are about one step above a war zone. And it wouldn’t even need to be a car that expensive. Sending someone to the hospital could cost far more than that very quickly, especially if they sue. And if it’s major, that’s probably more likely than not. It’s a calculation you need to make for yourself. If the vast majority of your assets are in retirement assets, which are typically protected in the event of bankruptcy, then you can probably afford to gamble a little by having the state minimum level of required liability coverage. However, if the opposite is true, then you’re probably going to have to pay for higher coverage limits as I do and be thankful that it’s necessary.

As far as saving on auto insurance, there are at least some things you can do. First and foremost, have good credit and a clean driving record. If you get a ticket, fight it. The ticket itself may only cost a hundred or two, but the increased insurance premiums could cost more than that on an annual basis for five years or more. Some states are better than others for this. I know people in states where they’ve been able to lawyer up and get out of anything and everything up to and including alcohol related stuff. In other states, it’s not even worth trying. Do your research and find out which your state is and act accordingly.

Definitely shop around with your policy. The rule of thumb is to do it every other year, but with as much as I’m paying, I’m doing it every single year until further notice. Loyalty definitely doesn’t seem to be rewarded at all as most insurers raise your rates each and every year now. About the only exception I’m aware of is USAA. If you are eligible to do business with them, thank your lucky stars and do so! I’ve heard nothing but good things. I’ve also heard good things about Amica, although every time I’ve gotten a quote from them it’s been way out of the ballpark so who knows. But most insurance companies are the same basic “charge sky high premiums, then forget your wallet when it comes time to pay the bill” scams operations.

At least by shopping around, you know you’re not getting totally screwed. Ask for the longest term you can get (usually it’s either a year or six months) since if you don’t, you’re effectively financing your annual premium and the interest rate is not low. Also, you can raise your deductibles to the max. Usually it’s only $1000 though, which limits the premium difference it makes. My attitude is that most accidents involve replacing a bumper, which is going to cost about $1000. I’m not going to make a claim and send my premiums into the stratosphere so the insurance company will hem and haw and finally grudgingly pay out five hundred bucks. No thanks. So I’d be paying the first thousand regardless in the event of a serious accident.

That’s another thing to keep in mind with insurance. Don’t make a claim if you don’t have to. Much like with buying extended warranties, you are extremely unlikely to come out ahead in the long run. If you do, you’re one of the lucky (although also extremely unlucky in another way of thinking) few. Think about it. If the insurance company (and warranties are sold by them as well) pays out more than it takes in, it goes out of business. So in most cases, you’re going to have to fight for every dollar. If the scope of the situation gets big, make sure the insurance company knows you will involve an attorney if you need to. And don’t be afraid to follow through with that either. Someone needs to keep the bastards honest. 

I saved the least important type of insurance for last, at least if you’re a renter. Most renters insurance I’ve ever had has included roughly $30k for personal property, which is enough for almost any apartment dweller, and has cost about a hundred bucks a year – yes, even in the insurance hell that is Houston. Usually I just get it as an add on with whatever auto insurance company I’m going with that year. Of course, it is much more significant if you are getting homeowners insurance since you’re insuring the exterior of the building as well. And if you live in a hurricane area like Houston, suck it up and pay for the flood insurance. In case you haven’t been paying attention for many years now, new storms “make history” on a very regular basis. Don’t assume you are safe just because the flooding didn’t reach your area in the past. People have literally lost their homes for doing exactly that.

If it hasn’t come through in the tone of this post, I fucking hate insurance. It is one of the only industries besides politics that makes finance look ethically upstanding. I get that there are problem customers like in anything else, but for the vast majority of us, this is going to amount to decades and decades of donating money to for profit entities. But if you keep an eye on them, both when making sure you’re paying a competitive premium, and when actually making claims, you can at least keep the bleeding from turning into hemorrhaging.

Why I’m Not Afraid of the Health Insurance Boogeyman

These probably won’t help…then again, you only live once! – Image courtesy of Jean-Marc Buytaert

I occasionally hang out with early retirement minded people. Some of them have already taken the plunge, some are thinking about it more and more as I am, and some are much earlier in their financial journeys but are intrigued by an alternative to the “work till you’re either dead or wish you were” program that has been the standard for far too long. Easily the most common question I hear being asked of the people who have already retired ten, twenty, or even thirty years before the traditional age, is “what about health insurance?”

And I admit that was one of my first questions as well. Most people I’ve met answer this question in one of a few disappointing ways. Some were able to negotiate some sort of arrangement with their final employers, some have a spouse that is still working, and many are structuring their incomes in such a way as to be eligible for subsidies on individual coverage under the Affordable Care Act. None of these is workable for me. My current employer will likely be neither willing, nor able, to make any deal with me, I don’t have a spouse who can keep working so I can “retire,” and I can’t stomach exploiting badly written legislation for personal gain – particularly not when I’m currently paying a substantial share of the associated bill.

After I recently learned of some significant challenges my current employer is facing, which threaten not just my job and those of many of my colleagues, but the company itself as a going concern, I’ve been thinking a lot about my options. I could find a similar job at another company. Since I started my latest job search, there have certainly been some encouraging signs that this will be a viable option – although nothing has come to fruition just yet. But aside from maintaining the status quo as an employee/entrepreneur hybrid, I’ve been looking at other, more adventurous options. One common thread among many of them would be stepping out from under the umbrella of having an employer at all. And this has brought the health insurance question back to the forefront.

But as I’ve begun to explore the issue, I’ve actually been very pleasantly surprised by what I’ve learned. It turns out individual health insurance is both fairly straightforward and less expensive than I had anticipated. I acknowledge that things would likely be different if I had dependents. But at roughly $15k per child, per year, for as long as one is willing to keep the financial umbilical cord intact, having children is one of the most expensive financial decisions a person can make. That is one of several reasons I’ve personally opted out.

Anyway, I searched around and Blue Cross Blue Shield appears to be king of individual health insurance in my neck of the woods. By simply entering my birth date, non-smoker status, and zip code, I was presented with a menu of options ranging from the most minimalist plan at roughly $320 per month to something approaching the top of the line plan I have now at nearly $700. I didn’t see an annual payment option but if one is offered with a decent discount, it would amount to an awesome churning opportunity. One nice thing that I believe came out of the ACA is that it appears all plans now cover the one annual preventative appointment we should all be going to. Of course, that is priced into the premiums. But I digress. Beyond that, as a relatively healthy young adult, I’m almost certain to spend somewhere in the $0-1500 range per year on health care expenses, meaning paying an extra $400 a month for a high end plan that would cover most of that doesn’t make sense. I will note that there are subsidies offered for people with surprisingly high income limits. Sadly, I’m in the group that pays handsomely for those subsidies to be offered, and don’t anticipate that changing, so I’m paying full freight for my own coverage no matter what. But your results may be different – particularly if you have kids. And as the birth rate continues to decline, it is very likely that we will all see the government using more mechanisms like this to force people like me to subsidize your procreation efforts. For what it’s worth, that will likely offset at least a portion of the additional costs you would face in areas like this.

Ultimately, my choice would be a plan that costs $332 per month because it is the cheapest HSA eligible option. With a deductible of $6k, an out of pocket limit of $6650, and no prescription coverage until the deductible is met, I would almost definitely be paying all of my costs beyond the annual preventative appointment. In most cases, I would probably not even use the insurance, instead opting to negotiate directly with doctors since my insurance would effectively cover nothing anyway. I’ve heard there is often significant room on the pricing if you aren’t forcing the provider to deal with an insurance company.

But this is where it becomes important to calculate things out for yourself. If you tend to spend a lot in health care costs, it may make sense for you to go with a plan with higher premiums but more coverage. One thing to consider is that it’s not necessarily the end of the world if a plan doesn’t offer prescription coverage (it can’t if it is HSA eligible). Thanks to a wonderful website called Good RX, anyone can pay much less than retail prices for prescriptions whether or not they have insurance. Don’t ask me what kind of sorcery makes it possible, but this can be an absolute godsend if you don’t have prescription coverage and yes, I did use it back when I worked for an employer that offered a very minimalist coverage option.

I’ve mentioned “HSA eligible” twice now. Why? HSA stands for health savings account and it’s a hidden financial gem. Unlike an FSA, which is garbage unless you have health care costs you can forecast very reliably, an HSA is a tax advantaged account that can be built into quite an asset. To put it simply, it is a miniature Roth IRA for health related expenses only. This year, an individual can contribute $3500 into one. The money can be invested in whatever you want, provided you’ve chosen a good provider, and as long as you don’t spend it, it will grow tax free just like a Roth IRA. It does ultimately have to be spent on health care expenses, but given the state of the industry, I don’t believe any of us will have too much trouble accomplishing that. In fact, remember that quarter million dollars the media is always screaming about you having to pay for your health care expenses during your traditional retirement years? Well, if you contribute the max to a Roth IRA for twenty or thirty years and don’t use any until you retire, that is more or less covered – without dipping into your other assets. As usual, a little knowledge can go a long way towards putting out the fires of mainstream ignorance. The important thing to keep in mind with HSAs is that only certain more minimalist health insurance plans are eligible for them. If you have a lot of health care expenses now, you may be better off with a “Cadillac” plan paired with an FSA. No one can tell you definitively without specific information; I recommend that you run your specific numbers yourself to figure it out.

But in my case, a disaster only health insurance plan and an HSA are a home run combination. The only problem is that pesky “Cadillac” plan I have now. But given that I’m kicking in well under $100 a month for it, and that’s tax deductible by the way, it’s obviously the best option available to me as long as I’m with my current employer. However, once that relationship runs its course, likely by the end of this year, it’s nice to know I will have some great options available to me and that they won’t be nearly the financial disaster the media would have folks believing they are.

Are You Wasting Hundreds a Year on Car Insurance?

While combing through a friend’s finances with him in search of savings opportunities recently, we struck gold with his car insurance. He is going to save hundreds of dollars over the next year as a result of making one minor change and at this point in his life, that will go a long way for him. In the process, I realized that car insurance is probably a large potential savings opportunity for a lot of people and I was inspired to write a post on the basics. Please note that I am no insurance expert and none of this, or anything in any other post for that matter, is intended as legal advice. But I do know a fair bit and I may be able to help point you in a direction that will save you some cash.

The first thing I tell anyone about insurance in general is that in many cases, loyalty counts for nothing. In my experience, the only reward for staying with a company long term is a consistent premium increase. This doesn’t necessarily apply to all companies but it also doesn’t cost you anything to get a few quotes to make sure your existing company is still competitive. I recommend doing so every couple of years or so. Companies seem to make fairly regular changes to the way they rate drivers, vehicles, etc, and the only way to find out about them is to shop around and see who is offering you the best deal today. Don’t assume that anything will be consistent from person to person or even from year to year for the same person. Numerous variables go into what premium is charged. Some agents seem to be very willing to shop around for you as a new customer but very reluctant to do so when you are already on the books. This has to do with their business model. However, just as with almost any other service, if you are less valuable as an existing customer than you were as a new one, become a new one again – for someone else.

Another important thing to look at with car insurance is your coverage itself. Liability coverage is required in most states now and is required by common sense and basic human decency everywhere. Sometimes the legal minimums are lower but I recommend at least 100/300 for bodily injury and 100 for property damage – and 200/400/200 wouldn’t be overkill either. Remember, if you run out of insurance coverage, you’re on the hook from that point on. And things can get expensive very quickly whether you’re paying to repair cars or people so skimping on this to save a few bucks on premiums could be a very painful decision in the long run. Liability coverage also benefits you in the form of uninsured/underinsured motorist coverage. There are simply far too many irresponsible people out there and as usual, people who make one bad decision, such as not having car insurance, tend to make others as well. In my relatively young life, I’ve already been rear ended by not one, but two uninsured drivers while stopped behind lines of cars at stoplights. It doesn’t get any more “not at fault” than that. In both cases, I was very glad to be covered by my own insurance company even though the drivers who hit me hadn’t had the decency to get coverage of their own.

So where can you save money on coverage? In the physical damage section. For this part, you need to consider both the car you’re driving and your financial situation. First of all, if your car is worth less than $5000, you may want to consider passing on collision coverage altogether. Of course, this means if you are in an at fault accident, you have to pay to repair the damage to your car. But most accidents are minor ones that involve little more than replacing a bumper, which is usually around $1000. Plus, if your car is worth that little, chances are you’re not going to repair minor damage anyway. So by not having the collision coverage, you’re really betting that you either won’t get in an at fault accident or that if you do, it will be a minor one. I like those odds. That said, if you don’t have a reasonable emergency fund of at least $5000, you may want to think twice about this.

Please note that if there is a lien on your car (in other words, if you have yet to pay it off), you cannot do this because it will put your loan in default status. You probably don’t want a visit from the friendly repo man anytime soon – even if your lender is likely to call and threaten you for a while before they go to that extreme.

If you want to follow a more minor version of the no collision coverage strategy that doesn’t put an auto loan in default, you can raise the deductible. Going from $500 to $1000 usually makes a decent difference in the premium. I have never seen going higher than $1000 do much of anything so I leave it there. This should pretty well confirm what I said above about most accidents amounting to a $1000 bumper replacement; insurance companies literally bet on it with their pricing.

Aside from coverage changes, there are a few other more traditional methods of lowering your car insurance premium. You can pay for six months at a time or annually if your insurance company offers that option. This usually saves you a little and offers the bonuses of both a head start on any credit cards you may be churning and locking in the premium for the full term you’re paying for. For example, I will only do a full year here in Houston since premiums are rising very quickly as insurers work to recoup their Harvey related losses. You can also get a discount for getting your car insurance from the same company as your homeowners/renters policy. You can talk to your agent to make sure you’re getting all the discounts you may be eligible for (good student, membership in certain associations, completed safety classes, etc). In the case of many insurers, you can also get a discount for letting them use a gps to monitor your driving habits. However, as a safe driver, but one who also likes to get where I’m going in a timely fashion, I’m always going to pass on that offer.

This obviously isn’t exhaustive of every possibility but hopefully it will give you an idea or two to try out. Good luck and safe travels out there!