Should you get car insurance through your credit union?

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If you’re a credit union customer, you may get a solicitation in the mail saying that you’re paying too much for car insurance and can get a better rate through the TruStage Auto & Home Insurance Program.

But can you really save with TruStage? We got quotes from them and some competitors to find out…

TruStage: How their quote stacks up against the competition

Many credit unions partner with third-party industry organizations like CU Solutions Group and its LoveMyCreditUnion.org portal to offer their members discounts on cell service, tax prep, home security monitoring and any of a variety of other services.

One part of this affinity program for credit union members is a potential discount on car insurance through TruStage.

Recently, I got the following letter in the mail pitching me on how TruStage could save me up to $509 on car insurance:

trustage letter auto insurance pitch

I wanted to find out if it was true. The only way to know that was to get a quote from TruStage and several other car insurance players. Since they name-checked State Farm, Allstate and GEICO in the letter, I decided to go with those options.

I obtained quotes from each player online, except for TruStage, for which I used the 800 line and my personal invitation number on the letter.

The quotes you’ll see below were obtained for:

  • A 43-year-old man, widowed
  • Driving a 2007 Hyundai Sonata
  • Commuting four days a week to/from work and school
  • A daily one-way commute of 30 miles
  • 15,000 annual miles
  • Employed full-time
  • Master’s degree
  • One speeding ticket in the past 12 months (less than 14 miles per hour over the speed limit)

A couple of notes before we get into the quotes from TruStage and the others: Even though you can typically save by bundling both your home and auto policy with the same insurer, I specifically declined this option. I felt it was the most honest way to assess the claim TruStage made in its letter, which honed in specifically on auto insurance.

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Another caveat: You may see minor differences in the level of coverage from quote to quote. That’s because the insurer’s website defaulted me into preset amounts during the application process. I left these minor variances intact to reflect exactly how the quotes came to me.

So without further ado, here are the quotes:

GEICO

$694.30 for a six-month policy

geico100 auto insurance quote

geico25 car insurance quotegeico50 auto insurance quote

Geico75 car insurance quote

State Farm

$712.94 for a six-month policy

statefarm1 car insurance

state farm auto insurance quote

Allstate

$852 for a six-month policy

($742 if paid in full)

allstate1 car insurance

TruStage

$633 for a six-month policy

($1,266 for a 12-month policy)

trustage auto insurance quote

Analysis of quotes

Well, there you have it. TruStage was indeed cheaper than three other competitors and beat the next nearest company (GEICO) by $61.

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Membership in a credit union really does have its benefits!

One final thought: The quotes above all included comprehensive and collision coverage with a $500 deductible. Because of the age of my vehicle, I’m going to drop comp and collision at the time of my next renewal, which is coming up in a few months. That will save me several hundred dollars by itself.

Money expert Clark Howard has a rule of thumb when it comes to when you should drop comp and collision.

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