Driving Less Can Save You Money on Auto Insurance

 

The amount you drive affects car insurance rates. This includes the distance and frequency of your commute. Vehicles that are driven more often have higher accident risk. Insurance companies track how far you commute when evaluating how much you should pay for coverage.

Distance of Commute Factors Into Rates

Commutes that are longer distance expose drivers to more risk. The more time you spend driving every day the greater your chances of being involved in an accident, running into traffic, or encountering bad weather. These are all factors used to help determine your premium.

Shorter commutes mean that you spend less time on the road. The less time you spend driving, the lower risk you pose to your insurance company. A shorter commute can also mean that you have less chances of being involved in an accident that would lead to an expensive claim.

Miles Driven Per Year

One of the numbers that insurance companies look at when you apply for coverage is how many miles you drive per year. The more miles you put on 

your vehicle each year the greater your chances of being involved in an accident. Additionally, the more miles you drive the more likely you are to make an insurance claim during that policy period.

If you find that you consistently drive less each year than you told your insurance company you would, you may be paying for more coverage than you need. Try to keep your mileage expectations as close to reality as possible.

Rush Hour = More Risk

The more congested your commute is the higher risk you will fall into. Commuting in heavy traffic means you are exposed to more sudden stops, erratic drivers, and slower speeds. All of these can increase your chances of getting into an accident.

High traffic commute times are riskier when you factor in insurance underwriting. More cars on the road equal more opportunities for accidents and insurance claims. If you commute during rush hour you can expect to pay more for your auto insurance.

Location, Location, Location

Insurance companies also look at where you commute when determining rates. If you commute through heavy traffic you are more likely to get into an accident. Dense traffic areas also have higher rates of vehicle theft.

These are some of the ways that location can affect your auto insurance rates.

● High traffic locations tend to have more accidents

● If you live in an area with high theft rates your comprehensive coverage cost may increase

● Urban areas usually have more traffic than rural areas which can lead to more fender benders

● Rural areas also have their own driving dangers, such as animal crossings

You can see how two drivers that work the same distance from their home could get different rates from an insurance company based on where they commute.

Work From Home If You Can

If you are able to work from home you can avoid commuting altogether. This will decrease your yearly mileage which can lower your insurance costs. If you have recently started driving less, be sure to contact your insurance company. A decrease in mileage can qualify you for lower car insurance rates.

Take Public Transportation

Like working from home, taking public transportation can help you decrease your yearly mileage. If you take the train or bus to work a few days a week you are driving less. Driving less can decrease your chances of getting into an accident which could lower your insurance premium at renewal.

Every little bit helps when it comes to decreasing your annual mileage. Small changes can equal big savings down the road.

Re-evaluate Your Commute

Sometimes people just forget to tell their insurance company that their mileage has decreased. Whether it be from a new job, a shorter commute to work, or now working from home. Life changes happen and your insurance policy should reflect that. Take the time to evaluate your commute yearly to make sure you aren’t overpaying for insurance.

Ask Your Agent About Low Mileage Discounts

Ask your insurance agent if they offer low mileage discounts. Each insurance company has different requirements for their low mileage discount program.

●       Find out if your insurance provider has a low mileage discount program.

●       Ask how many miles you can drive per year to still qualify.

●       Keep track of your miles and provide them with documentation if needed.

●       Make sure to update your information after a life change.

You may be surprised to learn how many insurance providers offer discounts for drivers that put less miles on their vehicle each year.

Avoid Driving During High Traffic Times

If you have a flexible work schedule try avoiding high traffic times. Heavy traffic can increase your chances of getting into an accident. Traffic jams and agressive drivers are always factors but can increase when commuting during busy times of the day.

Switching up your work hours may not lower your rates right away but it can help you keep a clean driving record. A clean driving record can save you money on insurance.

Keep a Clean Driving Record

One of the best ways to save money on your auto insurance is to drive safely. Don’t let your commute tempt you into driving reckless. Accidents and traffic violations can increase your insurance rates.

By practicing safe driving techniques and staying defensive on the road you can lower your insurance costs over time. Just remember to be patient and your wallet will thank you.

Buy a Vehicle That’s Cheaper to Insure

Some vehicles are cheaper to insure than others. If you are shopping around for a new ride look for one that has high safety ratings, low repair costs, and comes equipped with safety features. Not only can certain vehicles reduce your chances of getting into an accident but they may also decrease how much you pay for insurance.

When shopping for a new vehicle don’t just look at the price. Research how much you would pay for insurance, gas, and maintenance. This will help you get the full picture of how much that vehicle costs to own.

Shop Around

Just like cars, insurance providers weigh your commute differently. While one provider may care more about your commute another may care more about your driving history. You could see a significant change in price from one company to the next just by providing different answers.

●       Get quotes from multiple companies.

●       Compare rates with the same amount of coverage.

●       Ask about commuter discounts.

●       Don’t just shop for price. Make sure you’re receiving good customer service.

It’s a good idea to compare prices every few years to make sure you have the best rate for your commute.

Use Your Commute to Your Advantage

While your commute does affect your car insurance there are things you can do to lower your cost. Update your information if your commute has changed or you now drive less. You can also drive safer to avoid tickets and accidents. Both of these will lower your insurance costs in the long run.

Sometimes driving less can be the hardest thing to recommend to drivers. However, if you can take public transportation or find another alternative you just might see a big savings.