At More Than $4 a Gallon Consumers May be Able to Save on Their Car Insurance

As the price of gasoline tops four dollars a gallon nationwide, the Consumer Federation of America (CFA) have released an analysis showing that consumers who are driving less could save an average of 5 to 15 percent on their automobile insurance rates ­about $47 to $142.

While skyrocketing fuel costs have created great hardship for many consumers, these increases could mean immediate savings on automobile insurance as drivers react to high gas prices by using mass transportation, car-pooling, taking fewer trips to the store or curtailing their vacations.

“Auto insurance rates are partially based on how much you drive and how you use your car,” said J. Robert Hunter, Director of Insurance for CFA and former Texas Insurance Commissioner and Federal Insurance Administrator. “If you drive less to save money on gas, these driving changes might mean that you qualify for immediate insurance rate relief,” he said.

“We encourage all Americans to act now to save money by calling their insurance company oragent and asking if they qualify for an immediate rate reduction.”

CFA released a “Consumer Alert” that detailed several ways that Americans who are driving less can save money on automobile insurance, including:

If You have Stopped Driving Your Car to Work or School:
· Your insurance classification has changed from “Drive to Work” to “Pleasure.”
· Savings could be 10 to 15 percent.

If You are Driving Only to a Train or Bus Station, Not All the Way to Work or School:
· Your insurance classification may change from the “Drive to work” mileage category.
· Savings could be 5 to 10 percent.

If You Have Consolidated Trips and are Driving Much Less:
· This reduces your miles driven per year.
· Savings could be 5 to 10 percent

Source: Consumer Federation of America

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