Adjusting Driving Habits Can Result in Auto Insurance Savings
With so much attention on gas prices, many Americans have cut back on their driving to save money. However, less driving can actually lead to another savings opportunity, paying less on your car insurance. If you have cut back on your driving lately, it’s a good idea to contact your agent or insurance company.
Consumers who are now utilizing public transportation or participating in car pools stand to save, because reducing the number of miles driven could lower the cost of their car insurance premiums.
Many insurers offer low mileage discounts to insureds who put fewer than 7,000 miles a year on their vehicles. While each insurer calculates rates differently, they all consider mileage because naturally the risk of an accident increases proportionately with the more time you spend behind the wheel.
However, lessening the risk of accidents isn’t the only benefit to driving less. The dollars you can potentially save is significant. A motorist who goes from 15,000 miles driven per year to 7,500 miles could qualify for say a 5 percent premium discount. Whereas, a driver who goes from 15,000 miles per year to 5,000 could save as much as 15 percent. Note that your insurance carrier may ask for an annual odometer reading to calculate annual mileage.
The Insurance Information Institute noted additional ways drivers could cut their auto insurance rates. SUV and truck owners who swap in their vehicles for a more fuel-efficient one can also reduce their insurance costs. Rates are substantially lower for a $25,000 sedan than a large $60,000 SUV. Besides the vehicle price, an insurer will determine the applicable premium rate for an individual vehicle based on factors such as the repair cost, its overall safety history and the chance that it will be stolen.
Motorists can also reduce their auto insurance premiums by opting for a higher deductible, establishing and maintaining good credit, and dropping unneeded coverages. Additionally, if you insure your boat, RV, or motorcycle with the same insurer, you may qualify for a multiple policy discount.
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