Car insurance companies consider several factors when deciding what rates to charge drivers. A good driving record usually results in lower rates. Drivers who live in safe neighborhoods will also receive lower rates. Also, those who are older pay less each month for their car insurance coverage. However, there is one more important factor that determines how much drivers will pay for their car insurance policy: The amount of miles driven in a given year.
Car insurance companies charge drivers less if they regularly carpool to work. They charge them less if they put fewer miles on their cars than the average U.S. driver. Therefore, it makes good financial sense to contact your auto insurer if you decide to take a break from your daily driving. After all, you're less likely to get into an accident if you dramatically cut down on your driving. If you decide to take the train to work each morning instead of driving 30 miles each way to reach your job, there's little reason for you to pay as much as you once did for your car insurance policy. In fact, you should be paying less. It may even be time to request new car insurance quotes from your insurer.
You should also call your insurance company if you move to a new location that requires you to drive your car with far less frequency. For instance, you might have made a move form the suburbs to the heart of a large, urban city. Not only do you take the train each day to work instead of driving, but you also walk to the grocery store, ride your bike to the movies, and take the bus to the grocery store. You've severely cut down on the amount of time you spend fighting traffic in your car. It's definitely time to contact your car insurance company for a change in your policy.
Car insurance coverage is a necessary expense. Unfortunately, it's one that can be a burden in today's challenging economy. The nation's unemployment rate has soared past 10%. Companies are still laying off even their top employees. New jobs are difficult to find. This means that consumers have to find as many ways as possible to save money. One way is to cut down on the amount of dollars you spend each month is on your car insurance policy. So if you have taken a break from driving to and from work each morning, or if you have cut down on the amount of miles you put on your car running errands, call your auto insurer. It's possible to generate big savings from this driving break. And right now, these are savings you can't afford to pass up.