You Can Save $100 on Car Insurance by Making a Simple Change of Direction — What Matters is How Much Time You Spend on the Road

DRIVERS have been inundated with rising car insurance rates, but experts say some small changes could save thousands.

Americans are paying an average of 18% more on car insurance as accidents become more expensive and frequent — but some drivers say they’ve saved up to $800 a month.

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Insurers calculate the risk that each driver runs when they hit the road.

Drivers who travel less than 10,000 per year can report their low mileage to insurers.

The average American drives more than 15,000 miles per year.

Because low-mileage drivers pose less of an accident risk, companies can save hundreds, according to Jacksonville CBS affiliate WJXT.

If drivers travel more than 10,000 miles, there are several other ways to save money on insurance.

However, some of the cost-saving solutions come with huge tradeoffs.

Owners should consider the value of their vehicle, the station said.

If your collision insurance and comprehensive insurance cover more than the vehicle’s value, it may not be financially viable to continue paying the extra cost.

“As a general rule, when the premium is more than 10% of the car’s value, it’s time to consider collision mitigation,” Consumer Reports’ Chuck Bell told the station.

Bell also said it may be wise to drop comprehensive coverage for a vehicle if the car’s value decreases.

However, if a driver is in an accident without collision or comprehensive insurance, they must pay the initial cost of purchasing a new car.

Drivers can take defensive driving courses to save some money monthly.

Some safe driving courses can save drivers up to $200 on their annual insurance premium.

Courses can last a few hours and typically cost $25.

However, some insurance companies accept online safe driving classes.

Expert car rental advice

Ray and Zach Shefska, the father-son duo that make up CarEdge, spoke with Sun Motors USA reporter Kristen Brown in an exclusive interview about their top tips before signing a new car lease.

Leasing a car may be a more viable option for some rather than financing with an auto loan.

Leasing a car for 24 to 36 months can be attractive to many because the monthly payments are typically lower than loan payments, although there are some restrictions, such as a mileage allowance.

At the end of the lease, people can purchase the vehicle at a reduced price or they can return it to the dealership and lease another car.

Before entering into a lease, Ray offered some important tips to consider, drawn from his 40 years of experience as a sales manager at various dealerships:

1. Learn the interest part of the rent — or the “money factor” — to understand how much interest you’ll pay and how much that adds up to in total.
2. Negotiate the sales price before discussing monthly payments – the cheaper the car’s sales price, the cheaper your payments will be.
3. Accept the premise that you will always have to make a payment, so you can have a good car for a cheaper price or a smaller car for a higher price.

Read more here.

Drivers can also reduce their rates by allowing insurance companies to monitor their driving.

Safe drivers can benefit from annual savings of up to $800 with driver monitoring tools.

However, some drivers have complained that the technology requires too much data.

Drivers later complained that insurers monitored their driving without their knowledge.

Various legal measures, such as sudden braking, rapid acceleration and swerving, forced drivers to pay more in their fares.

One driver reported paying 22% more after insurers monitored his driving.