If you like good food, you know it can be expensive. So saving money is important. One awesome way I saved money today was by switching my car insurance companies. I probably just saved $300+ dollars this year on car insurance in about 20 minutes.

Today, I decided to change my car insurance when I found an awesome website to compare quotes: http://www.autoinsurancemonkey.com.

I just entered my area zip code and in a few simple steps I got a ton of quotes from car insurance companies near me.

Here’s what I found interesting, even if a friend of mine and I had bought identical brand new cars on the same day after paying exactly the same price, how much we pay for insurance could vary as much as 50%+.

I talked to my agent and here’s what he said:

  1. Type of policy – There are many different types of policies and the policies taken by the two of us may be vastly different from each other.
  2. State where we live – Different states have different rules pertaining to car insurance because of which, there may be a huge difference in insurance premium.
  3. Driving records – Due to a variation in the driving records, there may be a component of ‘No Claim Bonus’ or incentive in one case.
  4. Coverage – The coverage which one of us might have opted for may be significantly different from the other.
  5. Security devices – Having security devices in the car helps in lowering the premium payable for insurance.
  6. Attending defensive driving courses – If one of us had attended the prescribed defensive driving courses, we may have to had pay a smaller premium.
  7. Age and sex of the driver – Age and sex of the driver may also have a bearing on the premium amount as some companies offer discounts to female drivers.

My friend bought the cheapest car insurance she could get, I decided to go with full coverage car insurance. Which is not cheap at all!