Gas prices have gone up 11 cents nationally in the last two weeks... and experts expect them to keep on rising into the summer months. If the high gas prices are causing you to drive less and use public transportation more often... you might be able to catch a break on your car insurance rates.@
Every mile you drive is costing you more these days... prices are at record highs for this time of year... and some people are looking for ways to cut back. And fewer miles on the car could mean saving on your auto insurance.
Walt Waggener, Insurance Agent: "The fewer miles you drive, the less you pay."
State farm insurance agent Walt Waggener says more of his customers are changing their car insurance plan and linking it directly to the number of miles they drive. The plan is based on driving 19,000 miles a year. your insurance rate then goes down for every 500 miles you drive under that.
Walt Waggener, Insurance Agent: "It varies depending on exactly which mileage, but I've seen savings averaging 15, 20 percent sometimes with my clients."
Some of those clients are cutting back on their driving because of high prices at the pump. maybe they're carpooling or taking the bus... but what if they're driving more than the 19,000 miles?
Walt Waggener, Insurance Agent: "The reality is people that drive their cars a lot of miles don't go on this program."
So how do you keep track of the miles you're driving? Well with State Farm if you have the on star system, it will keep track of your actual miles, or you simply keep track of it yourself.
Walt Waggener, Insurance Agent: "We use the honor system, we ask you how many miles are on the car, once you're on the program, one time per year."
A growing number of insurance companies are now offering the "pay- by-the-mile" insurance rate. a silver lining to the dark clouds of higher prices.