This post has been Consumeristed!
There are many financial issues to consider after you’ve been laid off. Filing for unemployment benefits. Signing up for COBRA or researching health insurance options. Rolling over your 401k. Reviewing the household budget.
I didn’t realize, at the time, that reviewing your auto insurance policy is also a great idea. I’ve been paying around $75 a month for coverage. When renewal time came, I called my insurance carrier to see if there’s any way I can get my premiums lowered without a decrease in coverage levels. Because of my layoff, I did not have daily commute. Even with treks to interviews and job fairs, my new mileage estimate is still far lower than my original figure.
With lower mileage estimates, I decreased my premiums to ~$60 a month and I will be getting a $135 “overpayment” refund from my carrier. I’m only sorry I didn’t do this sooner!
So, the lesson is this: if anything changes in your life that would affect your annual mileage estimate, tell your insurance agent! Some of these changes might be (of course, these changes might also increase your mileage):
- Change in job situation (ex: layoff, new job at a closer location)
- Change in relationship (ex: if you are in a long-distance relationship but you have now moved in with each other)
- Change in living location (ex: you used to live in a rural area but have moved in a city where more nearby amenities)
A reduced annual mileage estimate can very well lower car insurance premiums.