If You Don’t Drive Much, Save On Car Insurance

If You Don't Drive Much, Save On Car Insurance With This TrickI worked for GEICO for a few years after college, so I picked up some tricks that can help save money on car insurance (link!). But last week, I found a new trick I was previously unaware of and wanted to share with everyone.

Pay Per Mile Car Insurance

I recently found out about a new car insurance company called Metromile. With them, you pay a lower flat monthly rate compared to traditional insurance companies, plus a few cents per mile driven each month. So if you only drive a few miles per day, you can end up saving a lot of money by switching to Metromile. The less you drive, the more you save!

After some conservative calculations, it looked like we’d be able to drop our premium by around $125 every 6 months. That’s a pretty big savings just for switching car insurance companies, so I was prepared to pull the trigger. It would just mean signing up online and canceling my GEICO policy, which at most would take 15 minutes. Save $250 a year for 15 minutes of work once? Sign me up.

Check With Your Current Auto Insurance Company

I called GEICO (our existing auto insurance company) to see if they could match in some way. I switched jobs about a year ago and Lauren cut her commute significantly since graduating from her master’s program. I asked if driving less would qualify us for any additional discounts, and the customer service rep said she could plug in the details and see what that would do to our rate.

We updated our details to go from about 1,500 miles a month down to around just 500 total. With that, our rate dropped by over $100! So in a 5 minute call, we saved $200 per year. Bingo! The difference between GEICO and Metromile wasn’t enough to convince us to switch to a smaller insurer, so we kept our existing insurance, we’ll just be paying a lower rate going forward.

Metromile is a great idea for people who don’t drive much, but if you don’t drive much and are considering a switch to save money, contact your current insurer to see if your rate can be reduced if they have your updated driving data.

As always, it never hurts to ask. By doing some research and making a simple call, the savings can be significant.

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