Saturday, October 22, 2016

Car Insurance Tip to Save More...

In my state, you have to get your vehicles inspected once a year and this includes an emissions inspection as well. On average, this costs me about $62 per car per year. The nice thing about inspections (beside making sure your car won't self-destruct) is the inspector lists how many miles the car was driven for that year.  My state requires odometer readings every year. One of the main benefits is fraud protection (Preventing people from lying about how many miles the car actually was driven).

With car insurance, the insurance company wants to know how many miles each insured car will be driven in a year's time. This helps them estimate wear/tear and risk of accident. When being insured, if you don't know this number, the insurance company will set a rough guess between 10,000 to 15,000 miles (See for more info). Until yesterday, I never paid attention, so I took the default.

Well, yesterday, I had to change my car insurance address information (Since I moved), and they asked me the "How many miles will this car be driven" question again. Instead of the default 10,000 miles, I looked at my inspection receipt and saw a big difference. I only drove 9,000 miles and my wife 6,500 miles. When I made the adjustment, my premium savings was $200! So now, I pay $200 less each year on car insurance.

This may not work for you, or it might save you a lot (Especially if there's been a big change in how often someone on your insurance plan is driving). Remember, lying about your mileage is insurance fraud, so if you do, it's on you and it's steep consequences.