The One Change You Need to Make to Your Car Insurance in 2024

Between lingering inflation and the generally high cost of being a functional adult, many people are finding themselves squeezed financially these days. And if you're in that boat, you may want to do what you can to spend less on various expenses this year.

Of course, some expenses aren't so easy to reduce. If you're in the midst of a 12-month apartment lease that has you on the hook for a $1,500 monthly payment, you're probably stuck paying that much rent until your lease is up. But there are some expenses you may be able to slash in the coming year.

Planning out meals and buying food in bulk strategically could help you spend less on groceries. And being more mindful of usage could result in lower utility bills.

If you own a car, auto insurance may be a larger expense of yours this year. But one strategic move could leave you paying a lot less for it.

Only pay for the auto coverage you need

Forbes Advisor says the average cost of full coverage car insurance is $2,150 in 2024. Of course, the amount you'll pay will hinge on a variety of factors. These include your location, the type of vehicle you have, and your personal driving history.

But there's another factor that could influence the amount of money you pay for auto insurance -- the extent to which you drive your car. And if you don't use your vehicle very often, then there's a key change to your auto insurance you may want to consider.

A number of car insurance companies these days offer pay-per-mile policies. And while these policies usually aren't cost-effective for people who drive frequently, if you're in the opposite boat, then you may want to consider pricing out one of these policies and making a switch.

These days, a lot of people are working remotely on a full-time basis. If you don't commute to work, and you really only use your vehicle for occasional errands and social plans, then it could pay to get a quote from your insurer -- as well as other insurers -- to see what a pay-per-mile policy will cost you. From there, you can try to estimate your annual mileage to see if this sort of policy makes financial sense.

Of course, the one drawback to getting this sort of policy is that you might feel stressed about using your car for unplanned purposes. Let's say a friend calls and asks for a ride home from the airport. With a pay-per-mile policy, you might worry about driving your costs up by doing your buddy that favor.

But all told, if your car mostly sits parked in your driveway and you really don't drive too often, then it at least pays to get some quotes and see how much savings a pay-per-mile policy could result in.

Other ways to lower your car insurance costs

You may decide that a pay-per-mile auto insurance policy isn't right for you -- either because you drive too much or you simply don't want the stress. In that case, you can still take other steps to save on car insurance, such as seeking out safe driver discounts or bundling with an existing homeowners policy.

But if you know you don't do a lot of driving, it pays to at least look into a pay-per-mile policy. You may be surprised at how much financial sense it makes.