I made a mistake a couple months back and accidentally did not pay a car insurance bill. I pay my bills on time and have great credit. However, I had just paid a different insurance bill and got confused. So, I sheepishly called the insurance company and got a new policy for the car. To my huge surprise, my new policy with all of the identical covereages as before was now $200 cheaper per six month premium. So, my mistake saved me $400 a year.

Now, I know my husband is not going to be happy about me telling him our coverage lapsed. However, he was of course happy about the reduction in premiums. We then started contemplating why this was and could we save money on the other cars (on a s.eparate policy.) So, my husband called and had them requoted. Well, those came back $300 cheaper for the same six months coverage period with identical coverages from before. Total savings $600 a year

The only thing we could figure out about this is that the insurance company had continued to raise our premiums every year over the long period of time we have been with them. It was cheaper to get their covereage if you were a new policy verses a renewed policy.

Since saving money is so much fun, we continued on and re-quoted our homeowners insurance policy. Again, there was a substantial savings of about $700 a year for the same coverages. A note on changing your homeowners policy, this should be reported to your mortgage company when you do this!

Our annual reduction in costs were a total of $1,700. We have passed this information on to our neighbors and friends and heard other positive stories. One neighbor said they were able to reduce their costs by over $3,000 a year! Note I am not sharing the name of who I have my insurance with, as that didn't seem to matter, almost all insurance companies will have a reduction if you re-quote!