Drive Less To Save On Auto Insurance Coverage

July 12th, 2010 by Steve Tillman

In case you are like countless other people in the United States, you’re probably pinching some serious pennies right now. In these difficult economic times, almost everyone is looking for creative methods to save some money. Here’s one method to hang onto your money: think about walking to work or even the store as opposed to driving. Not only will you cut fuel costs and get a little workout-you may also be entitled to an invaluable price reduction on your car insurance policy rates.

Drive less often, save more Many insurers offer what’s known as a “drive less, spend less” insurance policy for drivers who rack up lower than common mileage on their vehicles annually. Depending on your carrier, you could cut your premiums up to 18 percent if you drive fewer than 7,500 miles per year. However, these kinds of plans are offered only in a few states. If you are seeking to conserve cash, you can ask your insurance company if you may be qualified to apply for this cheaper coverage.

How does it work?

The “drive less, spend less” plan differs with each and every insurance company. While some insurance companies will take your word for it on how many miles you drive every year, some demand evidence.

You can also find those insurers that provide you with even greater reductions-but they tightly observe their insureds. For instance, at least one carrier will require an OnStar subscription to enroll on this policy. Though an OnStar subscription runs about $19 a month, you could cut as much as 54 % on your auto insurance should you drive less than 15,000 miles a year under this plan. If you conduct a fast cost benefit study, many times it’s a good idea to spend the additional $19 per month.

Yet another insurance company provides an alternative to install a small, wireless device inside your vehicle to watch your miles driven plus your driving habits. While it may be strange to be aware that someone is constantly observing, you could save plenty of cash with this plan.

If you wish to stay away from expensive auto insurance, talk to your insurer if they offer a “drive less, pay less” policy. Otherwise, you should think about changing to a carrier that does offer these types of cheap car insurance policies.

If you are worried about uncovering the best auto insurance, don’t hesitate to stop by our site. Numerous guides are available on securing the best car insurance rates.