After years of coaching families, I know that one of the biggest budget busters any person can have is their auto and home insurance premiums. While this may not seem like a big deal to you, wasting money for no reason is one thing that will hold you back from building wealth. Frankly, you’re going to need EVERY PENNY working for you if you plan to become rich. That’s why this 2nd lesson is dedicated to helping you avoid wasting unnecessary money and finding the best insurance rates available.
I’m not sure what it is, but far too often I meet with people that are incredibly loyal to their insurance agents (to a fault). Just a few months ago I met someone that had been with her agent for 20 years! After reviewing her budget and seeing her insurance rates, I was floored. I had NEVER seen somebody pay so much for auto and home insurance! If memory serves me correctly she was paying $350/month for her car insurance alone — and that was on 1 vehicle!
After asking her if she had talked to her insurance company about the rate, she quickly said, “Well, my agent told me that since I was recently in an accident that this was the best that they could do…AND, he said that it was the best rate available on the market.”
The unfortunate part was that she believed him.
Well, I knew that the rate was astronomical, so I encouraged her to take 1-2 hours and contact a few different companies. Needless to say, that small amount of effort paid off and she ended up saving over $2,000/year on her insurance!
Did you know: if you save $50/month and start investing that money, you’ll have accumulated $75,000 after 30 years (assuming you average 8% ROI)?
Now, I’m not here to tell you that you’ll personally save money by shopping your auto and home insurance rates. But you’re not going to know until you take a few minutes to find out. From this day forward make it a habit to shop your insurance rates on an annual basis and never again be caught wasting money unnecessarily.
Regardless of whether or not your insurance agent is your friend (or family member), take some time this week and shop rates YOURSELF between 4 or 5 different companies.
With many of the companies I listed above, you can ask them to price your home insurance rates as well, but here are more direct links to the specific spots on their websites that will help you.
You can’t be headed down the proper path to building wealth unless you have all of your ducks in a row, and one of those ducks is making sure you’re not throwing money down the toilet!
Heck, I’ve done the hard work for you…all you have to do is click on the websites, fill out the information, and sit back while people compete for your business!
So, take a few hours today or over the next week and shop your auto and home insurance rates.
Succeeding financially involves a lot of moving parts, and how well you manage them will ultimately determine your success in the end. While you should still be working on increasing your income, you also need to sure-up some loose ends to ensure you’re not wasting money when you could be using it to become rich by saving it, using it to pay down debt, or investing in your retirement.
The articles are written by personal finance enthusiasts (not certified professionals) based on their personal experience. What works for them may or may not work for you, and you should always consult a financial advisor before making important financial decisions.
In accordance with FTC guidelines, we disclose that we have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.
Any references to third party products, rates, or websites are subject to change without notice. We do our best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.