In case you are like countless other individuals in the United States, you’re probably pinching some serious pennies right now. During these challenging times, everybody is looking for creative strategies to save some money. This is one method to hang onto your dollars: give some thought to walking to work or even the store rather than driving. You’ll cut fuel costs and get a little exercise – plus you might also be eligible for a valuable discount on your car insurance.

Drive less, save more
Many insurance companies make available what’s known as a “drive less, spend less” plan for drivers who drive fewer than common miles on their vehicles every year. Based on your insurance carrier, you could cut your rates up to 18 percent in the event you drive under 7,500 miles a year. However, these policies can be obtained only in certain states. If you’re seeking to fatten up your pocket book, check with your insurer if you might be qualified to apply for this cheaper car insurance coverage.

How does it work?
The “drive less, spend less” plan can vary with every insurer. While some insurers will take your statement on your annual mileage, others require proof.

Then there are those insurance companies who offer increased discounts-but they tightly keep track of their drivers. For instance, at least one insurer will require an OnStar membership to be on this policy. Though an OnStar membership costs just $19 a month, you could save around 54 % on your car insurance if you drive less than 15,000 miles per year with this plan. If you perform a fast cost benefit analysis, you may find it’s well worth the extra $19 monthly.

Yet another insurer offers an alternative to install a small, wireless device inside your car to observe your miles driven as well as your driving behavior. While it may be a little strange to grasp that someone is always watching, you could save lots of cash with this policy.

If you wish to stay away from expensive auto insurance, ask your insurer if they have a “drive less, pay less” plan. If not, you might consider moving over to a company which offers these cheap auto insurance policies.

This entry was posted on Wednesday, June 2nd, 2010 at 6:24 am and is filed under Auto Insurance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.