This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Wednesday, January 21, 2009

An unexpected savings from driving less

Posted by Matt

This should be a quick one. I just had to share such an easy way to save money!

I downloaded and skimmed through Suze Orman's 2009 Action Plan last week and found a savings tip that I actually put to use:
Designate one car as your “low mileage” car; if you keep annual mileage below 7,500–10,000 miles, the premium discount can be 10% or so.
I already knew that driving less was a good way to save money: reduced fuel expense, less wear and tear, etc. But this was news to me. I did the math and, sure enough, I've been averaging about 6800 miles per year or so. I contacted my agent to let him know and he quickly agreed to update my policy.

Now I didn't have high hopes for the savings; I thought it would be a few bucks or so. After a few days of waiting for my online account to be updated, I was elated to discover that my 6-month premium dropped from $320 to $263.22!

You may not be able to reduce your driving to this level (it helps to telecommute occasionally and bike or ride my scooter in the summer time), but if you have, make sure you're getting the discount!

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