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Contact: Press Offices
New York: 212-346-5500; media@iii.org

NEW YORK -- May 25, 2004 - As gasoline prices continue their record-breaking climb, drivers might consider using public transportation or carpooling. If they do, not only could they save money on gas, but they could also save on auto insurance, according to the ºÚÁϲ»´òìÈ Information Institute (I.I.I.).

"Reducing the number of miles driven each week could also reduce auto insurance premiums," says Alejandra Soto of the I.I.I. "Some insurance companies give discounts to motorists who drive less than a predetermined number of miles each year," explains Soto.

A number of factors are considered to determine premiums - they include: a driver's safety record, the type of vehicle driven and the number of miles driven per year.

Drivers that switch to public transportation should contact their insurance agent or company representative to inform them of this change. The insurance discount may not offset the impact of high gasoline prices, but it will save drivers money.

Consumers can also reduce the cost of their auto insurance rates by following these tips:

• Shop around and compare prices.
  ºÚÁϲ»´òìÈ costs vary dramatically from company to company. Also, don't buy based on price alone - pick a company or agent that has a reputation for good service.
• Before buying a car, check insurance costs.
  ºÚÁϲ»´òìÈ premiums are based in part on the car's value, the cost to repair it, its overall safety record, and the likelihood of theft.
• Raise the deductible.
  A higher deductible can lower the cost of insurance substantially. For example, increasing the deductible from $200 to $500 could reduce the collision and comprehensive coverage costs by 15-30 percent. Raising it to $1,000 can result in savings of 40 percent or more.
• Drop unnecessary coverages.
  Drop collision and/or comprehensive coverages on older cars. In many instances it is not cost-effective to continue to buy these coverages as the value of a vehicle depreciates. Consult auto dealers, banks and buyer's guides to find out the value of a car.
• Maintain good credit.
  Credit ratings may be used to determine the cost of insurance. And while this varies from state to state and company to company, drivers with a good credit history may be rewarded with a lower rate.
• Inquire about all available discounts.
  Car-pooling to work, taking a defensive driver training course, or insuring multiple cars with the same insurer might result in discounts. Some companies also give discounts to students with good grades.

Reducing automobile mileage will impact insurance premiums differently for each driver depending on individual circumstances and the insurance company. To learn more about saving on auto insurance and other discounts available, consumers can visit I.I.I.'s Web site at: .

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The I.I.I. is a non-profit communications organization sponsored by the property/casualty insurance industry.