Tuesday, June 17, 2008

Driving Less? Check On Lower Insurance Premiums

Driving less because of gas prices? Putting that SUV in the garage and using the compact primarily? Maybe you can also save money on car insurance.

Last week, I read an article in The Wall Street Journal about getting lower insurance rates for driving less than 7500 miles per year. I already knew about and had switched to the category of driving less than 10,000 miles per year. However, I did not know about the 7500 mile threshold.

Since the beginning of 2008, I have driven my truck about 1500 miles, which is significantly down from the 12,000 miles per year I drove before retiring in my forties. Retiring eliminated a little over 7000 commuting and work related miles per year. I called my agent and she confirmed I would save 18.6% on my car insurance premium if I drove under 7500 miles per year. Immediately.

To note, we have not been consciously trying to drive my truck less. It just happened, because we use my spouse's car for transporting the entire family. Thus, it has been a great bonus to have lower gas costs and lower insurance premiums for my truck.

For more on Ideas You Can Use , check back every Tuesday for a new segment.

This is not financial or insurance advice. Please consult a professional advisor.

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