Can High Gas Prices Reduce Your Insurance Premium?
The average price in the U.S. today for a gallon of regular gas is $4.10. All drivers have been feeling the economic impact resulting from these record gas prices. As a result, people are thinking of new ways to reduce their driving and save on fuel costs.
Many people are carpooling, walking, switching to public transportation, scooters or bikes to combat the high prices. As a result of these changes, you may actually be able to reduce your auto insurance rates. The less you drive your car, the less likely you are to be involved in an accident. If you reduce the amount of miles you drive per week, you may fall into a lower rate bracket. It all depends on your insurance company’s rating system.
The fact is that if people are driving less, no matter what the reason, less accidents will happen. If you look back at the energy crisis in 1979-1980, studies show that amount of auto claims was drastically reduced. This was a result of drivers being resourceful and minimizing the time they spent behind the wheel. Even after the crisis was over, there was still a long period of decline in claims. It will be interesting to see if that trend holds true in today’s world. Although people are cutting back, will they continue on this trend as prices possibly get lower or alternative fuel methods become more mainstream?
So if you are feeling the crunch at the pump and are looking for other ways to save; check with your agent to see if you qualify for a reduction on your auto insurance premium by driving less.
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