GMAC Insurance Helps Fourth of July 'Staycationers' Save Money Year-Round with the Low-Mileage Discount

Auto insurance discounts for people driving less; Tips to optimize gas mileage

WINSTON-SALEM, N.C., June 30 /PRNewswire/ -- Americans are choosing to celebrate Independence Day closer to home this holiday weekend as the high cost of gas and financial belt-tightening continue to influence their spending decisions. For people opting to take a "staycation" and who are driving less overall these days, GMAC Insurance offers a way to cut their annual auto insurance by up to 54 percent. The average consumer will realize savings between 19 and 25 percent.

The National Retail Federation reports that this year 44.5 percent of Americans will alter their plans for the Fourth of July weekend due to rising costs at the gas pump. Further, GMAC Insurance's National Drivers Test (http://www.NationalDriversTest.com) found cutting back on driving is not unique to vacation planning. The survey revealed 30 percent of Americans plan to drive less this year to reduce expenses as a result of financial stress and concerns over the economy. To help people reduce their expenses, GMAC Insurance is offering significant potential savings on auto insurance through its Low-Mileage Discount (http://onstar.gmacinsurance.com).

"Ongoing frugality in these tough economic times is certainly influencing people's driving decisions over the holiday weekend, but that's just a snapshot of the larger trend we are seeing. For those people who annually drive fewer than 15,000 miles, the Low-Mileage Discount can help them save money on their auto insurance throughout the year," says Wade Bontrager, senior vice president of GMAC Insurance.

GMAC Insurance customers who are also subscribers to OnStar service are immediately eligible for a discount ranging from 10 to 20 percent on select coverages on their auto insurance(1), regardless of their annual mileage, according to Bontrager. However, they can shave even more off their annual insurance premium if their mileage for the year does not exceed 15,000 miles. Depending on mileage, some can save as much as 54 percent.

Using OnStar's pre-existing Vehicle Diagnostics capability, with the customer's permission, GMAC Insurance receives a monthly odometer reading from the customer's vehicle. The information GMAC Insurance receives from OnStar pertains only to total mileage driven. Locations to which the customer drives and the speeds at which they drive are not reported. In addition, if the customer drives more than 15,000 miles per year, they will not be penalized with a higher premium; they just won't qualify for the Low Mileage Discount.

The Low Mileage Discount is currently available in 34 states. Drivers who average fewer than 2,500 miles annually realize the steepest discounts. To learn more and to estimate potential auto insurance savings, visit: http://OnStar.GMACInsurance.com

For more information on how OnStar and GMAC Insurance work together to provide the Low Mileage Discount work, visit: http://www.onstar.com/us_english/jsp/services/video.jsp?videoVar=lmd

Reduce the Refuels! GMAC Insurance offers 5 Simple Tips for Drivers to Use Less Fuel and Save Money

1. Maintain your vehicle. By keeping up with your vehicle's scheduled maintenance, you can reduce the cost of future repairs and improve gas mileage. Investing in a vehicle service contract or vehicle maintenance plan offered through a reputable company may also defray costs when it comes to both unexpected mechanical repairs and routine maintenance, respectively.
2. Keep your tires inflated. Pump up those tires to the proper PSI. It's the easiest, most cost-efficient way to reduce gasoline use.
3. Lighten your load. Every 100 pounds you add to your load subtracts 1 to 2 percent of fuel efficiency. Remove sand bags you might have added to the trunk for winter driving; take off the bike rack, if you aren't using it; and unload any other unnecessary cargo. However, make sure to leave the essentials, such as your emergency safety kit.
4. Don't idle. Picking the kids from mall or a friend's house? Waiting out front while someone runs into the store? If you are stopped for more than 30 seconds, shut the car off to avoid wasting gas.
5. Ease up on the gas pedal. If you accelerate hard at green lights and when traffic lets up, you might want to think twice. Jerky, stop-and-start driving can hurt your gas mileage.

The GMAC Insurance Group is one of the largest automobile insurers in the United States and is a wholly owned subsidiary of GMAC Financial Services. GMAC Insurance Personal Lines offers a variety of property and casualty products, including personal auto, RV, motorcycle, commercial auto and homeowners insurance. With a nationwide network of claims professionals, local independent agents and a 24-hour, toll-free claims reporting hotline available 365 days a year, GMAC Insurance provides superior claims service for its customers. Visit GMAC Insurance at www.GMACInsurance.com.

About GMAC Financial Services

GMAC is a bank holding company with operations in North America, South America, Europe and Asia-Pacific. GMAC specializes in automotive finance, mortgage operations, insurance, commercial finance and online banking. As of March 31, 2009, the company had approximately $180 billion in assets and serviced 15 million customers around the world. Visit the GMAC media site at http://media.gmacfs.com for more information.

(1) Average total savings include the Low-Mileage Discount and the OnStar Anti-Theft Discount combined. The Low Mileage Discount provides savings across most coverages of vehicle policy. The OnStar Subscriber Discount provides savings off the Bodily Injury, Comprehensive and Property Damage coverages of the vehicle policy. Drivers who average fewer than 5,000 miles per year may receive more than 35 percent in savings. Savings estimates assume a weighted distribution of premium across coverages. Discounts across coverages will vary by mileage tier. Must have an eligible OnStar-equipped vehicle delivered after 4/21/04. OVD required. Not available in all states.

    CONTACT: Mike Dunklee
    O: 313-656-3672/C: 734-679-7015
    mike.dunklee@gmacfs.com