How Paying More For Gas Might Actually Help Your Illinois Car Insurance

How Paying More For Gas Might Actually Help Your Illinois Car Insurance

Anyone with a driver's license will find it difficult to forget the rapid rise in the cost of gasoline, and many drivers are cringing as they watch the price at the pump crawl up for yet another summer. Relax, ladies and gentlemen-those rising gas prices might have some benefits after all. Sky high gas prices may hold the key to cheaper Illinois car insurance.

I can almost hear you asking, "What's the price of gas got to do with the cost of my car insurance?" Nothing directly. Contrary to popular belief the oil industry does not, in fact, have their fingers in every pie from coast to coast. What it does mean is that between the rising cost of gas and the current crunch in the economy drivers are looking for ways to save money. In doing so they're also going a long way toward cutting the costs on their Illinois car insurance.

When people have to pay more for gas they tend to travel less. After all, who wants to spend $60 to fill the tank of their mini-van for a day trip? It's the exception rather than the rule. Instead, drivers are taking public transportation, reinvesting in bicycles and "footing it" more than ever before. The direct result? They're spending less time on the road, which almost immediately guarantees a more affordable car insurance policy.

Illinois car insurance is determined in part by the amount of time its drivers spend on the road. It makes sense when you think about it; drivers who are on the road a lot are more likely to have accidents and, as a result, more likely to file claims that cost their car insurance companies money. They really hate that. To flip the situation around, less time on the roads is going to equal fewer accidents and, as a result, fewer claims paid. It's saving the insurance companies money, savings they're happy to pass on to you in the form of lower car insurance premiums.

Nobody really wants to pay more for gas, but it's good to know that the Eiffel Tower price per gallon we all saw at the pumps last summer managed to do something other than bleed out bank accounts dry. While this summer's gas prices aren't expected to reach the record highs of last summer's record highs (the Energy Information Administration projects crude oil will trade at an average of $51 a barrel in 2009, translating into lower gasoline prices) it can still be expected to climb with summer nearly upon us. By driving smart you can manage to decrease both the cost of your Illinois car insurance and the cost of your gas in one fell swoop.

**If you're interested in finding other ways to lower the cost of your Illinois car insurance coverage, ask your insurance agent about Illinois's "Pay-Per-Mile" insurance option. At last count Illinois was one of only four states that offered Pay-Per-Mile coverage, along with Arizona, Pennsylvania and Indiana. By purchasing a pay-per-mile coverage plan you can be rewarded for your frugality by lower gas prices and a lower car insurance premium.**

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