Jul 30, 2008 6:50 pm US/Eastern
Consumer Report: Drivers Save By Traveling Less
NEW YORK (CBS) ―
To save at the gas pump, many drivers say they're just hitting the road less.
Angela Cowan is so fed up with fuel prices, she and her husband decided to make some drastic changes.
"He located a job closer to my job so that we could still work in the same vicinity of each other and then just carpool together," says Cowan.
Meaning she is now driving half as much as she used to.
"It's like 28 miles one way to get to work now, versus him driving the extra 30 miles," she says.
Those fewer miles are adding up to huge savings for Cowan, and not just at the gas station.
"How much you drive is a crucial factor in how much you get charged for auto insurance," says Travis Plunkett of Consumer Federation of America.
If you drive less than a certain number of miles a year, you can qualify for what is called a low-mileage insurance discount.
Plunkett adds, "If people drive fewer miles, they get into fewer accidents. It's that simple."
How much can you save?
"Our estimate is that people who are cutting back in major ways, should be able to save between 10 and 15 percent on their auto insurance premiums," says Plunkett.
The key is to drop into a lower mileage bracket. For example, if you start taking public transportation to work and simply drive for pleasure on the weekends, you win.
"Most companies look at whether you drive fewer than 10,000 miles a year or more than 10,000 miles per year," Plunkett says, "so if you're cutting back and it takes you down below that 10,000 mile limit, you likely could save some money."
However, to get the premium down, you need to notify your carrier.
"Place an immediate call to your insurer or your agent and offer to document it if they wish," says Plunkett.
Other ways to save on monthly car insurance payments are to increase your deductible or simply keep your car in the garage. Your credit history is also an important factor for many auto insurance companies. Many studies show a correlation between bad credit and risky driving.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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