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How to Save Money on Auto Insurance and Transportation

Gaurav Bhola, MSM, Managing Editor

The cost of owning a car keeps growing to extraordinary proportions due to rising gas prices. According to AAA, the average cost of owning and driving an automobile 15,000 miles a year is $7,830. The yearly cost is higher for SUVs, at $9,990 per year. The annual cost of ownership is all inclusive; includes, fuel, maintenance, taxes, depreciation, insurance, registration, financing, and more.

Undoubtedly, in these economic times you need tips on how to cut costs for your personal economy:

Buy Used

Once you drive off the lot, the value of your car depreciates considerably. Due to the fact that new cars loose most of their value in the first few years, buying a used car offers you the opportunity to drive a car that is like new.

I recommend that you buy a car that is three years of age or less. Many favor five years as a good range, but I think three years or less is best, as most cars are still under factory warranty and likely in excellent condition. Also, your collision insurance and taxes are lesser than on a new car.

Buy a Gas Efficient Car

The gas prices are going to keep rising in the coming years, the prices aren’t going to roll back to 1990s gas prices of $0.89 per gallon. Herein, you need to carefully research a car’s city gas mileage rate and not the highway rate. Most drivers will drive in the stop and go traffic of the city, so don’t be allured by a car that advertises good highway miles.

You don't need to buy an expensive hybrid car to save money on gas; the higher price on a hybrid cancels out any savings on gas. You can buy a regular car with good city gas mileage and save hundreds of dollars on gas every year.

Re-evaluate your Car Insurance

Log onto to the internet and get rates for auto insurance. There are many sites that offer free no-obligation car insurance quotes. You never know, you might find a good deal.

Collision & Comprehensive Coverage

If your car is worth less than $2500, it is not worth retaining the collision and comprehensive coverage part of the car insurance.

Increase your Deductible

Raising your deductible from $500 to a $1000 can save you 10% to 15% on auto insurance policy.

Joint Policies

Check with your home insurance or homeowner’s insurance company to see if they offer car insurance. If they do offer auto policies then you may be able to save up to 15% off a multiple-line policy.

Shop for Gas

You can check online for gas prices in your neighborhood and see if there are any savings available to you on gas. It is not uncommon to find variances in gas prices within a few blocks.

Car Pool & Public Transportation

If you can car pool with people or access public transportation, do it. You are saving money on gas, as well helping the environment.