Low Mileage? Prove It
When you take out an auto insurance policy you are typically asked to estimate the number of miles you drive each year. Generally speaking, the fewer miles you drive the lower the risk to the insurer, so most will charge a lower premium if you don’t drive a lot.
But how do you prove your mileage? Insurance companies have started offering discounts to drivers who are willing to attach electronic devices to their cars that verifies the number of miles driven. GMAC Insurance uses the OnStar system to report mileage. Progressive Insurance uses the Snapshot program, a small device you install under your dash. Under the right circumstances, discounts can be up to 30%. The Allstate DriveWise program monitors your speed, noting each time you go faster than 80 miles an hour.
If you are a safe driver who drives relatively few miles, check these programs out they could save you a significant amount on your car insurance premiums.