Here we are, Day 9 of My Budget Boot Camp! So far I’ve peered over, inspected, and kicked my giving, rent and utilities, child care, doctor’s co-pay, and health insurance budgets into high gear (and lower costs). Now it’s on to today’s topic: auto, home, and life insurance (you know, all those other insurance needs).
When Mike and I first started this journey towards financial freedom, we had auto and home insurance from a local agent. We got a discount on our auto insurance because we also had home insurance with the same agent, and we were getting a pretty good deal compared to the policies we had before we got married. However, we weren’t super excited about our insurance agent– he just seemed like a salesman, you know what I mean? We never felt totally comfortable with him or with the decisions he advised us towards concerning our insurance.
Then I started listening to Dave Ramsey about the time I started this blog, and he started talking about these people called Endorsed Local Providers (ELPs). Basically, if you can’t have Dave personally overseeing your money, an Endorsed Local Provider is the next best thing. These are people who are very familiar with Dave’s money philosophy, have gone through some of his training, and are committed to helping people manage their money wisely and get out, and stay out ,of debt!
So I did a little searching on Dave’s site and found an awesome insurance agent in our area. I started out just getting some quotes from them for auto and renters insurance and would you believe? They came up $100 cheaper per year for more comprehensive coverage! Plus we really liked the vibe from the company.
At the same time, Mike and I were feeling convicted about getting life insurance as gift for our precious daughter in case the unthinkable ever happens to us. Since Mike’s job does not offer life insurance as a part of his benefits, we also decided to apply for life insurance through our new agent.
Oh and a random awesome side story: the medic who came to our house to get our stats for the insurance underwriting process got to talking to Mike about music and web design, and long story short, he ended up hiring Mike to do a freelance website for his band! Cool!
Anyway, we now have auto, home, and life insurance through one awesome company with an agent we love and, for the most part, trust. And we also get a nice little discount for having all three policies under one roof- bonus! We also get discounts for things like safe driving and staying healthy.
- Auto insurance: Well, we definitely need to drive places, and it’s illegal not to have auto insurance if you are driving, sooo…
- Home/renters insurance: We don’t have a lot of cash flow, and so if anything were to happen to our house (a fire, tornado, flood, theft), I like to know it’s covered so an already stressful situation would not escalated to epic-stress proportions. And I personally have started a fire before. In my first apartment in college. I was making nachos in the broiler and the next thing you know, I opened the broiler to find a flaming mess of chips and cheese. No one was hurt, but I did lose some money on the deposit.
- Life insurance: If something were to happen to either Mike or I (or both), there would definitely be a lot of grieving and sadness. But because we have life insurance, we wouldn’t have the added freak-out about how to keep making ends meet. Life insurance is a gift to each other, and a gift to our daughter.
On a side note: we don’t currently carry disability insurance. We have been told that it is extremely hard to get if your job doesn’t offer it as a part of their benefit package. I haven’t really done any research on that statement yet… anybody else know if that is true or not?
How about you? Do you have insurance policies and an agent that you really like (or dislike)? Why do you decide to carry (or not carry) your insurance policies? Have you found any tricks for lowering those premiums? Also- do you have disability insurance, and was it really that hard to come by?? Leave a comment!
Go To: My Budget Boot Camp Day 10