# Wait, my insurance cost for the year would have went DOWN by buying a condo?

Note: This post was originally written and meant to be posted around closing on the condo. I’ve adjusted it so that it still makes sense.

This is absurd! A week before closing was scheduled, I called my insurance company to finalize the new condo insurance policy and cancel my renter’s insurance policy as of the day the lease on my apartment ends.

We managed to get the condo insurance policy set at about \$155, which is \$45 more per year than my renter’s insurance policy of \$110. That extra amount is acceptable since they are insuring more than they are in my rented apartment.

The point in the conversation where I became flabbergasted was when the insurance agent started asking me questions about my auto insurance policy. I explained that I’ll probably drive to work on average once per week after I move, so I expected the cost of my auto insurance policy to go *up* by a small amount.

I asked the lady how much my auto insurance policy would go up after I move and she started telling me that it was going to go DOWN. And I’m going “What?!?! My auto policy is going DOWN by telling you I’m going to be driving more?”

It turns out that when they drafted the new condo insurance policy for me, they re-pulled my credit score and it was much better than the last time they checked it, so that saved me about \$50. Condo insurance policies are slightly more expensive than renter’s insurance policies and cover more, so my “home+auto discount” improved to save me about \$100. They also price based on zip codes and my condo is in a different zip code than my apartment is, saving me just under another \$200.

Let’s compare my insurance costs for the year pre-buying the condo and after buying the condo:

BEFORE:

• Renter’s insurance = \$110
• Auto insurance = \$1,600
• Total = \$1,710

AFTER (Condo):

• Condo insurance = \$155 (+\$45)
• Auto insurance = \$1,300 (\$-300)
• Total = \$1,455 (-\$255)

So I would have saved about \$255 per year in insurance costs by moving and buying a condo or about \$21/month. I wasn’t complaining, but I’m still flabbergasted by this concept.

Now what happened with the whole move to a new apartment instead of buying a condo?

AFTER (Apartment):

• Renter’s insurance = \$96 (-\$14)
• Auto insurance = \$1,470 (-\$130)
• Total = \$1,566 (-\$144)

I, unfortunately, didn’t get to keep the full auto insurance policy discount since I no longer owned a condo, nor did I change zip codes, but I did at the very least get to keep the credit score improvement and that also helped the renter’s insurance policy, so I still saved some money on insurance through this process. I will definitely be calling them at the very beginning of my next policy year to re-pull my credit and see how that changes my policy cost! I will probably try to shop around for insurance when I look at buying a different condo, just to make sure that after almost 2 years, I’m still getting the best deal on my policies.

Readers, have you ever saved money by doing something you were already planning on doing like I have with my auto insurance? Are you as surprised by my insurance company as I was? How often do you shop around for your insurance policies?

## 8 thoughts on “Wait, my insurance cost for the year would have went DOWN by buying a condo?”

1. I’m a little surprised that your insurance went down with your credit score. I wonder if that’s possible in Canada; my car insurance is astronomical.

• I was quite confused that my lack of credit history when I graduated from college would affect my insurance policies. My coworkers have tried telling me that my car insurance is too expensive, but I’ve shopped around!

I would be curious to hear if credit score affects your car insurance in Canada as well. I figure that insuring my car in Canada would probably cost about double what it does here, which is insane!

2. Foscavista says:

Again, geography amazes me. Granted, I own a house, but I live by the coast and the threat of hurricanes (although they tend not to hit here), so my annual insurance bill (after all the discounts that can be applied to it) is around \$1300!

• \$1300 for everything would be pretty awesome! How new is your car? Mine is a 2011 model that I bought brand-new in late fall 2010.

I definitely think that my insurance would be cheaper in a rural area. It sounds like you live in a somewhat rural area compared to me?

3. Foscavista says:

It’s more suburban, and when I quoted you \$1300 that was for just the house. My partner and I pay \$1400-\$1500 in auto insurance for our two cars (2007 and 2010). We are excellent drivers with excellent credit but who live in a state with expensive auto insurance for everyone! Let’s not forget that we pay for flood insurance, but that’s just \$333/year. It’s not required, but it’s one of those things you are glad you have.

• Yup and one of my ideal condo buildings would hold an earthquake insurance policy. I have a feeling that my auto insurance will keep going down for the next few years.

4. socaltj says:

I stick with USAA for the past couple years. I had an issue with an accident in the last five years, so towards the end of my all allstate policy where they were still penalizing me, actually got usaa at a lower rate as the first 3 years had gone up and had allstate pro rate refunded. (In CA there one discount you get for no issues for > 3 years and another for > 5 years

• Sounds like the accident is almost off your insurance record – congrats!