With the economy in the state it’s in, people are doing all they can to trim their budgets. You’ve probably already started clipping coupons, eliminated the daily trip to the coffee shop and started bringing lunch from home to save even more money.
If you only drive a few months out of the year, you may have even considered dropping your car insurance altogether until you need it again, but that may be a bad idea. Auto insurance requirements vary from state to state, and if you live in a state that requires insurance on any vehicle you own, you’ll need to keep your policy current for as long as you own your car, whether you’re driving it or not. Keep in mind, too, that it may actually be more expensive to regularly start and stop an auto insurance policy than to keep it going continuously.
But there are steps you can take to save money when your vehicle is not used for an extended period of time. Consider the following:
1. Ask for a low mileage discount. According to the Consumer Federation of America, you could save 5 to 15 percent if you stop driving to work, or join a carpool. Generally, if you drive less than 7,500 miles a year you’ll qualify for a 5 percent discount. And driving less than 5,000 miles a year will give you 10 percent off your insurance.
2. If your car is more than five years old and you have no loan against it, consider dropping your collision and comprehensive coverage. You’d probably pay as much in premiums over a few years as you’d pay to repair or replace the car.
3. Use your down time to compare auto insurance rates and find out if you’re paying more than you have to for your coverage. When shopping around, be sure to ask if there are discounts available for vehicles that are not being driven very often.
