High Gas Prices Can Translate To Lower Car Insurance Premiums...Really!

It's true: you may be able to save money on your car insurance bill as a result of today's high gas prices. How? Well, if you've been cutting back on your driving in order to save on fuel costs, your reduced driving may entitle you to a discount on your insurance premiums. Statistically, people who drive less are less likely to get into a car accident, so most insurance companies offer a discount for these drivers.

The good folks at Insurance.com issued a press release on this subject today; snippet below:

"Insurance.com recently confirmed that consumers who are driving less because of higher gas prices could be saving money on their insurance.

A recent analysis by the Consumer Federation of America (CFA) indicated that drivers could save an average of 5 to 10 percent on their auto insurance rates if they reduced their annual mileage.

"Many insurance companies look at how much you drive each year," explains Dave Roush, CEO of Insurance.com, "and a small change in your yearly mileage could result in big savings."

Insurance companies consider whether or not a driver is using a car for business or pleasure, and even reducing the number of miles driven to work each week could result in savings. The CFA report uses the example of simply reducing miles driven each week from 200 to 175. This small annual mileage reduction from 10,400 to 9,100 could make a big difference to auto insurance rates. Drivers can cut down on their mileage by car-pooling for work, making fewer trips, or consolidating errands into one trip.

“Insurance companies often use 10,000 miles as a price point in determining auto insurance rates,” Roush reported. “If you drive less than 10,000 miles annually, you could see a savings of about 5 percent on your premium.”

Less driving means less exposure to situations that could result in an accident. This results in fewer claims, and encourages insurers to lower rates.

J. Robert Hunter, director of insurance for the CFA, suggests that it's a good idea if "consumers who are driving less shop around before renewing their policy."

Roush agrees with Hunter's advice. "It's important to regularly confirm you’re getting the best deal from your auto insurance. You might find that you’ve saved several hundred dollars just by spending a few minutes comparing rates."

About Insurance.com
Insurance.com, based in Solon, Ohio, is owned and operated by ComparisonMarket, Inc. The Insurance.com website enables consumers to instantly compare and buy competitive auto insurance quotes directly from any of more than a dozen leading insurance carriers. When ready to purchase, users have the option of completing the transaction online or talking directly to an unbiased licensed agent. Other products include life, health and home insurance as well as travel, dental and pet health insurance.

In addition to Insurance.com, ComparisonMarket provides private labeled solutions to financial institutions, affinity groups and online marketplaces to offer their customers real choice and savings opportunities on auto insurance."

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