How We Calculate Our $500+ Average Savings
Complete transparency on our savings claim. Real data, real methodology, real results.
Data Source
We analyzed 1,247 policies written between January 2023 and January 2025 where clients provided documentation of their previous insurance premiums. This represents approximately 38% of our total new business during this period (the remainder either didn't have prior coverage or didn't provide previous premium information).
Lines of Business Included
- Auto Insurance: 687 policies (55% of sample)
- Homeowners Insurance: 412 policies (33% of sample)
- Commercial Insurance: 148 policies (12% of sample)
Calculation Method
For each policy, we calculated: (Previous Annual Premium) - (New Annual Premium) = Annual Savings
We then calculated the mean (average) savings across all 1,247 policies. The result: $547 average annual savings per policy.
Important Notes
- •We only included policies where coverage levels were equal or better (apples-to-apples comparison)
- •We excluded outliers (top and bottom 2%) to prevent skewing from extreme cases
- •Not all clients save money—approximately 15% of clients had equal or slightly higher premiums due to coverage improvements or risk factors
Case Study #1: Birmingham Family
Previous Carrier: State Farm
Previous Premium: $2,847/year (auto + home bundle)
New Carrier: Progressive + Travelers
New Premium: $2,124/year
Annual Savings: $723
Coverage improvements: Added umbrella policy, increased liability limits
Case Study #2: Hoover Small Business
Previous Carrier: The Hartford
Previous Premium: $4,200/year (BOP + Commercial Auto)
New Carrier: Nationwide
New Premium: $3,315/year
Annual Savings: $885
Same coverage limits, better pricing for their industry classification
Case Study #3: Vestavia Hills Auto Only
Previous Carrier: Geico
Previous Premium: $1,680/year
New Carrier: Safeco
New Premium: $1,347/year
Annual Savings: $333
Same coverage, better rate for clean driving record
While our data shows significant average savings, your personal results depend on many factors. As independent agents, our job is to navigate these variables for you. Here’s a look at what drives insurance costs in Alabama and how we help you find the best value.
Key Factors for Auto Insurance Savings:
- Driving History: A clean record is the #1 way to get lower rates. Carriers reward safe drivers.
- Credit-Based Insurance Score: Insurers in Alabama use this score to predict risk. We work with carriers who have more flexible credit requirements.
- Bundling Policies: Combining your auto and home insurance with one carrier is often the single biggest discount you can get.
- Vehicle Choice: The make, model, and safety features of your car directly impact premiums.
Key Factors for Home Insurance Savings:
- Home Age and Updates: Newer homes or older homes with updated roofs, plumbing, and electrical systems often qualify for better rates.
- Protective Devices: Monitored security systems, smoke detectors, and wind mitigation features can lead to significant discounts, especially given Alabama's weather risks.
- Location: Proximity to a fire station and local weather patterns (like tornado or hurricane frequency) play a major role.
- Deductible Choice: Opting for a slightly higher deductible can lower your annual premium, but it's a trade-off we can help you evaluate.
Our expertise lies in matching your specific profile to the right insurance carrier. A company that’s great for a family in Birmingham might not be the best fit for a driver in a rural area. We leverage our knowledge of the Alabama insurance market to find the optimal combination of coverage and price for you.
Most insurance agencies make vague savings claims without any supporting data. We believe transparency builds trust—even when it means admitting that not every client saves money.
By publishing our methodology, you can evaluate whether our claim is credible and whether our agency is right for you. That's the Marcus Sheridan "They Ask, You Answer" approach in action.
Your results may vary based on your specific situation, driving record, claims history, coverage needs, and the carriers we can access for your risk profile. The only way to know your actual savings is to request a quote.
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