Saving on car insurance

On the Money
June 16, 2008 4:53:35 PM PDT
With oil prices hitting a new milestone today at $140 a barrel, more people are leaving their cars at home and taking mass transit.For some people, that means less money for car insurance.

In our continuing series. "On the Money" Eyewitness News reporter Emily Smith has more on what you can do, to save money.

As gas prices creep toward the $5 mark, some are all but ditching their cars to save money on fuel.

"I had been spending 400 dollars a month and now spending $115 a month on a train ticket," said motorist Rick Mcardle.

That $185 dollar a month savings also means driving about 13,000 miles less than last year.

Yet, Mcardle is still paying for full auto insurance. Sounds unfair right?

The Consumer Federation of America just released an analysis saying by driving less you might qualify for immediate insurance relief and save 5 to 15 percent.

That's $47 to $142 dollars just on insurance!

But before you rush to call there are a few potential pitfalls. AAA says many drivers are under-insured as is.

"It might behoove one to leave things as they are to be sure theyre sufficiently covered," said a AAA spokesperson.

In other words If you do by chance have that accident with someone else who's also underinsured you might end up paying insurmountable out of pocket costs.

But for drivers like Rick Mcardle and we use the term loosely now that hes into mass transit, it just might be worth it to tell the insurance cmpany the driving is mostly being done by someone else, and the bill should reflect that.

STORY BY: Eyewitness News Long Island reporter Emily Smith

For other stories in our On the Money series, click here.