Do you think it's possible to save 50 thousand dollars just comparing car insurance?
This is not a prize, competition or gimmick, but I am about to show you a real life example where a family saved a fortune by making smarter choices with their car and the auto insurance provider coverage and flow on costs.
To begin, it is common knowledge there are many highly rated family sedans with premiums under $1,300 a year: Honda Accord, Ford Taurus, Hyundai Sonata, Subaru Legacy.
Ok, how did they do it?
Derek and Juanita Johnston, from Miami, Florida were on a drive to score savings. They challenged themselves to find a new way to save more money, 50,000 in fact. The thing about saving money is, it is not about earning more. Many people who earn more, spend much more relative to others, they don't value money as much as less wealthy people.
The key is having the right attitude to saving.
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 did. But recently the couple had their second baby in 2009, causing the family's childcare expenses to double up in cost.
The Johnston's decided their way of handling money had to change, they decided to take on a challenge to save 50,000 dollars, and this started when they then contacted an auto insurance comparison website, to see if they could get a better deal on their car insurance.
Of course, like most people they realised they were paying too much for car insurance, yes they could lots more money.
Not only this, they realised 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 recently just repaid in full their loan on their 2005 Volvo S60. The family decided to stick with the same vehicle they had rather than their usual plan like most of us follow, to borrow a new loan and buy new flashy wheels again. Their new found cash savings they made by not immediately splurging on their normal habit was equal to $700 a month in car payments that they would otherwise be paying to their car loan company if they had bought a new car model as normal.
As luck would have it, they were involved in a car accident, and their old car was written off in the crash last December. With their goal in mind, the family stuck to their savings plan and simply purchased the same model 2005 Volvo S60 for $14,500, the first used car the Johnstons had ever bought, which the insurance payout covered in full!
Motivated by their new found savings on the car, the Johnston's then realised how many other similar savings could be made on other standard household costs a family might endure: They refinanced their mortgage (monthly savings: $300), cancelled their professional garden care service, and swapped premium cable television for a Netflix subscription. Cable has too many advertisements on it these days anyway, and not enough shows you really want to watch. With the small family's new found cash injection they have been able to add a bundle of extra savings to their splurge / holiday / investment fund as well as to their retirement funds. They even have enough left over for many new luxury items, Derek may even buy a new motorcycle.
After the simple act of comparing car insurance set them on the right path to savings the family is making an estimated annual saving of $12,500. Multiple this amount by 4, and they will be saving themselves $50000 in four years. Not bad right? Without earning any more money, the family saved a bundle, all by first using a comparison service, and continuing to use such good habits.
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