Auto insurance. Repair. Maintenance. Taxes. Gas: Owning a car is expensive. Carpooling, using public transportation, walking, or biking can help save money. But if you don’t have those options, rarely drive, and want to save money, then what?
If you work from home, are retired, only drive occasionally, or have one pleasure vehicle you only take out on weekends, your best bet is still auto insurance.
How is that possible? Ask your agent about the following options:
“Pay-as-you-drive” (PAYD) policies
Many insurers now offer PAYD policies. This involves the addition of a device, easily installed below your steering wheel, that records how much you drive, when and where you drive, and your driving habits, such as the way you brake and accelerate. The insurance carrier calculates an amount monthly, and you simply pay for what you use. Even if you don’t like feeling as though you’re being “tracked,” consider the savings – some see premium reductions of up to 30 percent.
How is your vehicles rated?
On your insurance policy, your vehicle will be rated as “pleasure” or “work.” If you commute daily to work or school, your vehicle will be rated as “work”. If you’re retired, work from home, or drive only on weekends, it should be rated as a “pleasure” vehicle.
If your car has been rated as work and is now pleasure, there could be a fairly significant drop in premiums, since the likelihood of having an accident is reduced when you spend less time on the road. Check it out.