Zach in Rhode Island asks us this question – “Are there any discounts out there for drivers who don’t drive that much?”
Insurance Panda answers:
Drivers are always looking for a way to lower auto costs. Having a car can be expensive. When you factor in how much you pay for auto insurance, general repair and those occasional emergency trips to the mechanic, as well as gas, it’s very easy to spend thousands of dollars each year just on transportation. That’s why many people are finding new ways to save money. Carpooling has become extremely popular and public transportation has experienced a resurgence of travelers. If you don’t use your car very often, make sure you let your insurance company know. You could also be saving money on your car insurance. It depends on who provides your insurance.
Currently, only a few insurance companies offer discounts for less driving, often known as pay-as-you-go programs. Of course, not everyone likes what you have to do to save money. For example, Progressive insurance offers a pay as your drive program that requires participants to install a device below the steering wheel. This monitors how much you drive as well as your acceleration and braking. You also have to pay $5 per month. The insurance company then receives information and will either charge you less or extra. Don’t like the idea of a device monitoring your driving habits? It could be worth it. Some drivers have seen discounts of 30% and you can opt out of the program at any time. If you’re seriously considering participating in a program like this, consider your driving habits. Even if you don’t drive often, you can still be a bad driver. Installing a monitoring device may not be a good idea. Check with your insurance company to see if a similar program is offered and what the stipulations are. If it’s not offered, take your time to compare other insurance companies to see how switching could save you money.