5 Things You Can Do to Lower Your Auto Insurance Rates

Drive Less

One of the questions an insurance agent will ask when you apply for auto insurance is "how many miles do you drive?" Do you know? I certainly don't. Maybe we both should start counting the miles. Those that drive less, pay less. The logic is simple: The less you drive, the less likely you are to get in an accident.

Some companies offer drivers a 50 percent discount if they drive fewer miles. Fifty percent is an awesome savings, but it comes at a price. Big Brother is along for the ride. The insurance company will probably want to install a mileage tracking device in your car. Such devices not only track how many miles you drive, but also how fast you're motoring through town, and whether you drive mostly at night or in the day. You might even have to pay a charge each month for the device [source: Fuscaldo].

Others offer customers a discount of up to 35 percent for those with a GM car equipped with OnStar Vehicle Diagnostics. If you have OnStar and drive less than 15,000 miles a year, you may qualify for the GMAC low-mileage discount. In addition, some companies offer pay-as-you-go insurance to give those who drive less than 15,000 miles a year a huge discount. The plan is meant for people such as city-dwellers who use public transportation, the elderly who don't drive a lot and someone who works from home (I just learned something new, today) [source: MSN].

Anyway, at the end of the day, the key to saving is to do you research, ask questions and shop around.

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