Insurance Space

The high cost of gas is forcing many of us to drive less. Angela Cowan and her husband made some changes in their daily commute to save money. “He located a job closer to my job so that we could still work in the same vicinity of each other and then just car pool together.” That has cut their driving in half.

Driving fewer miles can not only save you money at the pump, but on car insurance as well.

Travis Plunkett of the Consumer Federation of America explained that “how much you drive is a crucial factor in how much you get charged on your auto insurance. If people drive fewer miles, they get in fewer accidents. It’s that simple. Our estimate is that people who are cutting back in major ways should be able to save 10%-15% on their auto insurance premiums.”

The key is to drop into a lower mileage bracket. That often happens when drivers give up their cars for public transportation or just make fewer trips.

Plunkett said “Most companies look at whether you drive fewer than 10,000 miles a year or more than 10,000 miles a year, so if you’re cutting back and it takes you down below that 10,000 mile limit, you likely could save some money.”

These savings don’t take place automatically. Your insurance company won’t know you’re driving less unless you say something. Plunkett recommends you “place an immediate call to your insurer or your agent and offer to document it if they wish.” Why Mortgage Rates Rose When Fed Held Steady.

Angela is looking forward to the savings. “We can do extra things with our family, as far as eating out, taking vacations to visit family, and things like that.” A lot of drivers could end up like Angela. It is now projected that our annual consumption of gas will decline this year for the first time in 17 years.

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Tags: Auto Insurance