Apps reward drivers for low miles, safe driving

Looking to save money on car insurance? There’s an app for that. In fact, there are now several apps that you can use to reduce car insurance premiums, including ones that track your mileage and driving habits. Using these apps, you can lock in discounts. The apps can be a pain to use, and some may invade your privacy.

If you own a classic car that you occasionally take out for cruises, you’re probably not putting tons of miles on the odometer. Since the vehicle isn’t spending a lot of time on the road, the risk of a car accident and the expensive repair and medical bills it would incur are reduced.

With the right apps and plans, you can get low-mileage insurance plans. Nationwide, for example, offers Pay-Per-Mile SmartMiles insurance. You pay a $60 base rate and then .07 cents per mile driven. If you drive 500 miles or less per month, you could save $30 or more on your monthly premium (compared to an unlimited plan).

Many other insurance companies also offer apps and low-mileage plans. Some use devices installed on your car. Others use a mobile phone app. However, there are some hassles. For example, you might have to take your smartphone out to your car to check the mileage a few times a year.

Some companies also provide discounts for safe drivers, but you may have to install a device that monitors your driving habits. So, your insurance company comes along as a sort of backseat driver.