Drive Less and Save More

Driving less not only saves you money on fuel expenses it can also reduce the cost of auto insurance for both drivers with good credit and those with bad credit.

Are you ‘staycationing’ this year?

As we look around the office here at Auto Credit Express, it seems that many of us are joining the ranks of what the National Retail Federation has reported are the 44.5 percent of Americans who have changed their plans for the Fourth of July weekend as the result of rising gasoline prices.

According to a survey taken by GMAC Insurance, as many as 30 percent of Americans are cutting back on their overall driving in an effort to reduce expenses. Moreover, the company doesn’t just report on these figures, it, like many auto insurers, is doing something about it.

Low-mileage discount

Like many car insurance companies, GMAC Insurance offers a discount to drivers that drive lower-than-average miles in a year.

“Ongoing frugality in these tough economic times is certainly influencing people’s driving decisions over the holiday weekend, but that’s just a snapshot of the larger trend we are seeing. For those people who annually drive fewer than 15,000 miles, the Low-Mileage Discount can help them save money on their auto insurance throughout the year,” says Wade Bontrager, senior vice president of GMAC Insurance.

OnStar customers qualify

Although OnStar subscribers are eligible for an immediate discount that comes from an active subscription, these same customers are also eligible for low mileage discounts that can be as high as 54 percent (based on annual mileage of less than 2,500). How is this done?

If you’re familiar with OnStar, you’ll remember that the system comes with an onboard diagnostic capability. Using this technology (and with the customer’s permission), GMAC receives a monthly odometer reading from the customer’s vehicle. Using this information as a verification tool, GMAC Insurance will apply the appropriate discount (only distance, not locations or speed, is contained in the information).


The low mileage discount for OnStar subscribers is currently available, according to GMAC Insurance, in all but 16 states. More information can be found at the OnStar web site.

The Bottom Line

Even if you don’t own a GM vehicle or your vehicle is not equipped with the OnStar system, check with your insurance company to see if you might qualify for a low-mileage discount. Why? Because here at Auto Credit Express, we want you to take advantage of the lowest insurance rates possible while “on the road” to better credit!

Posted on June 30, 2009 by in Uncategorized
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