One of the questions car insurance companies ask when you are requesting a quote is how many miles you drive your car each year. You may have wondered why they ask this question. The reason comes is based in risk.
Car insurance companies want to know what kind of drivers they are taking agreeing to insure. And, it makes sense that drivers who put lower mileage on their vehicles are less risky. After all, fewer miles means you are driving less and there is naturally lower risk of getting into an accident.
Some companies do offer low mileage programs and there are even some newer insurance carriers who are offering policies based on how many miles you drive. Rather than lumping people into buckets, such as 15,000 mile per year drivers or 25000 mile per year drivers, these companies track your mileage and your rate is based on how much (or how little) you actually drive.
But, with traditional car insurance does it really make a difference if you drive 10000 miles or 20000 in a year?
You Could Save Money if You Are a Low-Mileage Driver
According to NerdWallet, it can. They looked at car insurance quotes for different levels of driving and in a few top insurance markets. What they found was that some companies offered lower rates, as much as 14% for low mileage customers. The steepest cut in rates came when miles driven went from 10000 to 5000. The average decrease was about 8.9%. That could add up to hundreds of dollars a year in savings.
The Federal Highway Administration, the agency that keeps statistics on the driving habits of Americans, says that the average driver drives over 13000 miles in year. If you are only driving 5000, its may be worth checking with your insurance company to see if you can get a lower rate. You may be able to save money if you are not lumped in with the large pool of average drivers.
Whether you drive a lot, more than the average, or only a little, it may be worth it to get car insurance quotes from multiple companies. And, be sure to ask about low-mileage discounts and programs if you are a low-mileage per year driver.
InsuranceWins can help you find a low-mileage policy. Just use the fast and easy form to get quotes form several carriers and find out who is willing to offer you a break for your low-mileage driving habits.