How I Reduced My Monthly Car Insurance Quote By $140


Lately I've been reading a lot on car insurances. Mostly about people's experiences with quote negotiations. At one point, I remembered I actually had a pretty interesting "insurance" experience myself when I first moved out to Los Angeles.


Before I share you my story, I'll have to explain you a few things about how I got to the point where I received a big deduction.


I grew up in a family where I was taught to speak up. When look back at my experience, that was exactly what I did. Yes, the policy change itself reduced the price as well, but at the moment I was negotiating, I came from a psychological place where I thought that the quote they were presenting to me was just way too much anyone should ever pay for insurance.


My objective was to get the cheapest quote as possible, while still being covered completely.


Lately, I've been in a few situations where - if I wouldn't have taken control or spoken up - I would've been off way worse. If anything, I think I would like that to be my main message in this post. Don't take no for an answer and don't settle for less. Or in this case more. You know what I mean...


I was 21 years old when I first applied for my drivers license, bought my first car and had my first car insurance experience. I didn't get that deduction based on my age. I did however change my policy and coverage in order to reduce the price, but at the time - like I mentioned earlier - that was not the place I was coming from.


Yes, In reality that is what happened. I did receive a deduction because of my policy change, but the change itself in the policy wasn't massive. I still had everything I needed. Maybe some amounts were reduced, but I pretty much had a good and solid coverage.

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Mind you, I'm living in Los Angeles, so the prices I will be presenting may seem a little ridiculous.


Doing Homework Before Engaging


I moved to Los Angeles on November 1st, 2013. I had a ton of friends from college who had moved here before me. They were so awesome and helped me out from the very beginning. Since I was new to the city, I asked as many questions as I could.


How does renting an apartment work? How and where do you take your drivers test? What's a DMV? Yea, I didn't know anything 2 years ago. 


Nonetheless, I educated myself and knew what I had to do. I found a car dealership plus the car I wanted to buy and decided to call State Farm to ask for a quote. A lot of my friends went with State Farm at the time, and since things were super overwhelming with the move, I decided to just go with them since it was easy.


Stay Strong, No Matter What.


I have to say, moving to a new country and city, it's pretty intense. It's a lot of change in a short amount of time. I'm a pretty tough guy, but it was hard at the beginning. Nonetheless, that gave me an advantage. When I first moved to the U.S., everything was completely new to me. The good side of that was that on another "spiritual" level, you just connect more with people. You care less about what people think of you and you just care about getting done what needs to be done. It's a weird thing, but if you every have a similar experience, you'll know what I mean.


Being an introvert meant that in my past, if someone would tell me "Hey this is what it's gonna cost you", I would've just said okay and not argued him at all. But moving around by myself and figuring life out in a new country definitely made me come out of my shell more. I guess you could say I've turned Intro/Extrovert. This definitely helped me when it the negotiation happened.

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The Appointment


I went by at one of their offices in Sherman Oaks, CA. I showed them the car I was interested in buying and asked them for a quote. They gave me a quote of $231.41 a month. I was absolutely BLOWN away! I looked at the insurance agent and just literally laughed out loud. I just couldn't believe people paid that much money for car insurance (I came from a small village in Europe where car insurance costs probably around 20 EUR a month). 


I based that reaction on the fact that I asked every single friend of mine living in LA that I ran into, what their monthly car insurance quote was. So I knew that the number that agent gave me was absolutely ridiculous.


I told the agent that his quote was way too much and if he couldn't get me a better deal I'd go somewhere else. I also told him that I had contacted other State Farm offices that gave me a way better quote, but I came to his office because it was closer by.


I told him that I didn't want to pay anything higher then $100 per month and I had heard some of my friends even had to pay amounts around $80 per month. That sounds a lot better then $200/month doesn't it? A few minutes later he came back to me and gave me a quote of $94.46. Now that was a way better quote. It was still higher then my friends' quotes, at least some of them. But I decided to take it. 


A few months later they reduced my quote by a few dollars because of my "loyalty" towards them. A few months after that, for some reason they kept on increasing my rate by a few dollars each time. They always had an explanation for it as well. So I decided that enough was enough.

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Then There Was Geico


I called Geico and explained to them that State Farm had been messing around with my quote. After talking to them on the phone for a few minutes, they gave me a new quote of $73.12 per month. Now, I'm sure other places in the U.S. are far cheaper, but you have to understand that this is Los Angeles. So I was pretty happy with that quote, considering my age and the fact I still got a pretty decent policy covering everything I needed. I also had a few fiends who were way older, had the same policy I had and payed around that same price. Knowing how age effects insurance quotes, I was glad with the quote Geico gave me.


I'm currently on a mission to even reduce my monthly quote way more. I barely drive my car anymore since I work from home. Mind you, in the beginning when I first moved to Los Angeles I was driving around A LOT! I want to say, probably 2000 miles per month. I was exploring the city, meeting up with people, going to job interviews. Now that isn't the case anymore. So I think I'm going to give Geico another phone call soon seeing if I could get another price deduction. 


I'll definitely give you an update in case anything changes. 


What about you guys? Have you had an interesting car insurance experience? I would love to hear about it. Feel free to comment on the comment section down below.

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  1. I live in New York on Long Island and my boyfriend pays $500 a month on car insurance. I think it is ridiculous! He had been in accidents, majority of them have been other people hitting him. He is also an introvert and I am an extrovert. I guess you could say opposites attract, anyway. You could say he’s a push over when it comes to other people, especially businesses. There has been many times I have had to speak up on his behalf and if it wasn’t for me we wouldn’t of gotten certain things. I cannot speak to his car insurance on behalf of him, he doesn’t have great credit but $500 a month and he is 29 years old and has driven for a long time to me, is RIDICULOUS! I want to look into things more but he also has Geico. Please let me know if you have any advice. I would appreciate it. They say he can take a defensive driving course to help lessen the cost but how much? 10%, 20% it needs to be more….

    1. Hi Deanna!

      That’s absolutely insane! I thought I was paying a lot! I do understand you can’t call Geico on your boyfriends behalf. And that’s unfortunate he has been in a few accidents. That doesn’t really help when it comes to insurance.

      Regardless, even though these are major corporations, there are still normal people on the other side of that phone line. If it were me, I would try a few things. I would think that I would have nothing to loose and I’d definitely try everything possible over the phone to get some kind of deduction.

      I’m not sure what you guys have tried already. What I did, was tell other insurance companies they were giving me a better quote, but their customer service wasn’t as good, etc. Leverage. I would just get creative and try a few things out. I can safely say that it’s helped over time and I’ve seen a trend where when I just try and be creative, I almost always an outcome closer to what I want.

      I think the important part is to remember that these people working for Geico are just normal people as well and they want you to be a part of their system. If anything, you have an advantage. You’ll be paying more then the average joe, since they have a few arguments regarding the accidents. They definitely don’t want to loose you. But you can still negotiate and say: “Look this is just TOO much”. Get a lower rate or I’m just out of here.

      Again, I don’t know the things you’ve tried and I think it comes all down to the conversation itself. You might get lucky and have a wonderful person on the line who goes the extra mile for you. I’ve seen crazy stuff happen while living here as a foreigner. You just never know.

      Best of luck and keep me posted if anything changes!


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