Low Mileage Car Insurance Discounts

There are many reasons why many motorists may be driving only few miles a year. It is not easy to let go of an automobile as it represents independence and option to pick up the keys and drive away. It does not matter that we do not use this option often. When many senior drivers are asked in a survey they said that they want to be able to drive very late in their lives. Simply because they do not want to feel like stuck in the house and cannot get out.

Looking at Your Driving Habits and Lifestyle

Generally work affects how many miles people drive. People who are working long hours and weekends in the cities do not have much time to use their cars. They have convenient public transport and constant availability of taxis. When they like to go away they usually like to go very far away. It is still highly likely that they keep a car around. Considering how expensive it is to insure a car in the city they can save a few hundred dollars by driving less than 7,000 (or 10,000 for some companies) miles a year.

Again, car insurance is expensive for young and older drivers. Young drivers can save considerable amount if they are not driving much. If they are living in a college campus they are unlikely to use their car to go to lectures and back. Even in their free times students do not go far out of the campus.

The same is true for elderly drivers. They keep cars around only for going to doctors’ appointments, do grocery shopping and few errands around.  Most of them do not take a long trip because of their health and medications. They do not go out during rush hours and at night. They too can save money on their expensive vehicle insurance premiums.

What Are the Cutting Off Points In Which Car Insurance Rates Changes?

Usually under 3,000 miles is for occasionally used cars like classics or seasonal cars like open cars. They normally manage to get really reasonable rates due to their occasional usage. Driving under 7,000 miles a year can save you between ten to fifteen percent. Usually the premiums start picking up after 12,000 miles. Nearly eighty percent of motorists drive between 7,000 to 12,000 miles a year. Once you go over 25,000 miles a year you are seriously on the road and start seeing its effects on your premiums.

Enlightening Your Auto Insurer with Accurate Mileage Details

As mentioned above your work can dictate how many miles you will drive with your private car. If you are in the sales business and making the calls on your own vehicle you can cover a few thousand miles a year. This may not be a problem if your company is paying allowance for using your own vehicle. Also, you may have a company car which you can take home to complete the commute. In such case, your own one may be sitting in the garage most of the time. Work out how often it goes out and how many miles it travels each term.

It is worth getting the mileage right as many companies do their own estimates based on your occupation, background and commute distance. They may have been over estimating your mileage. If we look at the above salesman example, they may have estimated a high mileage for you. However, you would not be driving anywhere near to that with your own automobile if the company is providing you with one.

Remember that there are variations as to how companies look at the mileage. Some companies consider below 7,000 as low mileage while few of them may have this number at 10,000. It is always worth checking what the position is and you should never buy insurance or renew without getting alternative quotes.

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