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Old 02-20-2010, 09:38 PM   #1
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Default Drivers Going Less Than 40 Miles Per Day May Be Entitled To Discounts

Source: WSJ - Smart Money -- The rising gasoline prices have hit many in the pocketbook but changing driving habits may wind up saving by what we pay out on insurance premiums. According to the Federal Highway Administration, American drivers drove 112 billion fewer miles between November 2007 and November 2008, Sam Belden, director of consumer experience at stated that insurance companies see it as "...less time on the road means less chance of an accident."

If the current gas prices have curtailed your normal driving routine call your insurance companies, many have been offering discounts for drivers who drive less for years and now thanks to higher gas prices, even more people are choosing to leave their cars in the driveway, or put off unnecessary car trips.

The only way to find out if you qualify though is to call your insurer. To give you and idea of what you can save, here's what some of the major auto insurers are currently offering.

American Family Insurance:
Drive fewer than 7,500 miles annually, and save 5% to 12%.

Driving between 12,501 and 15,000 miles a year to save 13%;
Driving 10,001 to 12,500 miles to save 18%; 7,501 to 10,000 miles to save 26%; 5,001 to 7,500 miles to save 34%; 2,501 to 5,000 miles to save 39% and 2,500 miles or fewer to save 54%.

Someone who switches from the "business" (primarily someone who drives for work purposes) to the "commute" (a person who racks up most of their miles driving to and from work) driving category could save 15% to 25% on their premiums.

Someone who switches from "commute" to "pleasure" (a person who drives for primarily personal/recreational use) could save 5% to 10%. (Agents determine the category and discount based on a series of questions about your driving habits, and the distance between home and work.)

New and existing policy holders who sign up for the voluntary My Rate program save 10% on their first six-month term. Based on the policy holder's driving habits and mileage during that time, drivers can save up to 30% more (New Jersey policy holders, up to 50%) on a renewal policy for the next six months, for a total possible discount of 40% (60% in N.J.). As long as the driver continues to renew their program membership, they can keep saving. The catch? Drive recklessly or dramatically increase mileage, and the rate could revert to the premiums paid before joining My Rate. (In N.J., drivers might even pay 9% more.)

State Farm:
Drive fewer than 7,500 miles annually, and earn a discount of 12% to 18%. Drive more than 7,500 miles, and a driver may still qualify for a discount based on reducing commute mileage. Someone with a "long commute" (more than 100 miles weekly) who cuts it to a "short commute" (30 to 100 miles weekly) could save 5%. Cut a "short commute" to "pleasure use" (less than 30 miles weekly) and save another 7%.

*Depending on your insurance company requirements for qualifying for less miles driven discounts range from filling out a form, (American Family - Farmers) to attaching a device to your car to monitor your driving habits(Progressive).

It never hurts to ask~

Last edited by Don; 02-20-2010 at 09:45 PM.
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Old 02-22-2010, 11:08 AM   #2
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Good theory, but from what I've checked into, the membership or service fee is too high. It would take quite awhile to earn your 'savings' back.
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Old 02-22-2010, 01:23 PM   #3
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People driving less miles already save money by not using so much gas.
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