Some Save On Car Insurance By Driving Less

(WCCO) Changing how much we drive won't just save us gas money, it can also help people save money on their car insurance.

Jeff Etzkin is already cashing in. It's rare for Etzkin to get behind the wheel these days. He said his breaking point was when gas prices jumped above $2.65 a gallon.

"The price of gas got so high, I started to look for alternatives," Etzkin said.

He has been saving more than gas money. He's also spending less on car insurance.

"I'm saving about 15 percent off of my premium for the year by not driving to work," he said.

Etzin isn't alone. More people are changing their driving habits.

"When gas prices go up, consumers drive differently," said Bob Hunter of the Consumer Federation of America. "Sometimes they don't drive to work anymore; they use mass transit or they carpool, or they just drive less."

In Minnesota and many other states ... if you stop driving to work or school, you may be classified as a "pleasure driver" and qualify for a lower rate.

You may also get a reduction if you still drive to work, but not as far or if you reduce miles in other ways, such as walking to the store instead of driving.

"The typical car in America is about $900 for insurance for one car. So, if you have a single car and you save 10 percent, that's $90, so it's worth a phone call," Hunter said.

It's also worth a call if you're thinking about buying a hybrid car. Travelers Insurance just rolled out a discount that applies in Minnesota, Wisconsin and about 25 other states.

"It is a 10 percent discount, and it applies to the majority of coverages," one expert said.

In some cities ... driving a hybrid will buy you free parking and access to car pool lanes ... even if you're alone.

"You need to have a clean air sticker on your vehicle. It just saves hours off your commute time over the course of a week," a representative of the car buying Web site edmunds.com said.

Studies show carpooling won't always save you time ... but money is a different story. Minnesota provides a tax credit on carpool and transit passes.

Transportation experts said plans like these will likely increase this summer along with the price of gas, so it's a good idea to keep checking with your company or state program.

"You should call your insurance company and tell them, 'I've changed my driving behavior — I've stopped driving to work' or, 'I'm using my car less,' and explain it to them and that you'd like to know if you qualify for a lower rate," Hunter said.

It's a lifestyle change that's paying off for Jeff.

"It puts money in my pocket. I feel good about what I'm doing," Etzkin said.