Tip Your Customers On How To Lower Insurance Rates

CONSUMER RELATIONSTip Your Customers On How To Lower Insurance Rates CLEVELAND (May24, 2006) - Insurance.com recently confirmed that consumers who are driving less because of higher gas prices could save money on their insurance. A recent analysis by the Consumer Federation of America (CFA) indicated that drivers could save an average of 5 to 10 percent on their auto insurance rates if they reduce, or have reduced their annual mileage. Insurance companies consider whether or not a driver is using a car for business or pleasure; even reducing the number of miles driven to work each week could result in savings, says CFA. Less driving means less exposure to situations that could result in an accident. This results in fewer claims and encourages insurers to lower rates. The CFA report uses the example of simply reducing miles driven each week from 200 to 175. This small annual mileage reduction from 10,400 to 9,100 could make a big difference to auto insurance rates. Drivers can cut down on their mileage by car-pooling for work, making fewer trips or consolidating errands into one trip. "Many insurance companies look at how much you drive each year, and a small change in your yearly mileage could result in big savings" explains Dave Roush, CEO of Insurance.com. "Insurance companies often use 10,000 miles as a price point in determining auto insurance rates. If you drive less than 10,000 miles annually, you could see a savings of about 5 percent on your premium." Consumers who are driving less should shop around before renewing their policy. Roush said, "It's important to regularly confirm you're getting the best deal from your auto insurance. You might find that you've saved several hundred dollars just by spending a few minutes comparing rates."(Source: Insurance.com)