SHIFTING COMMUTER HABITS CAN CUT CALIF. AUTO RATES:

By reducing the number of miles they drive each week, California commuters could reduce their automobile insurance premiums, according to the Insurance Information Network of California. As gasoline prices increase past $3 per gallon in some areas, some commuters may turn to public transportation to ease the crunch. But making public transportation a habit may simultaneously save consumers money in auto insurance. According to IINC, auto insurance premiums rely on many factors ranging from a driver’s safety record to the type of car being insured. The car’s annual mileage is also one of several critical factors in determining how much a car owner spends on insurance. Some insurance companies offer discounts to motorists who drive fewer than a predetermined number of miles each year. The effects of reducing automobile mileage on insurance premiums will vary depending on the driver’s personal circumstances and by insurer. “As commuters turn to public transit to reduce their household fuel bills, they should report reduced annual automobile mileage to their insurer or insurance agent,” said Candysse Miller, IINC executive director. “While the insurance savings may not completely offset the impact of skyrocketing gasoline prices on your household budget, the combined benefit of reduced fuel, maintenance and insurance costs could make public transportation a budgetary bonus for many commuters.”

Topics Auto