Ask For A Low-Mileage Discount On Your Car Insurance

Some people are lucky to have everything next door. If you are one of those individuals, you can take advantage of a low-mileage discount. Keep in mind, discounts can vary from insurer to insurer. Check out our simple guide to auto insurance as a low-mileage driver.

What makes you a low-mileage driver?

A low-mileage driver is someone who drives 0 to 7,500 miles annually. Most people receive an auto insurance quote at the average yearly mileage of 12,000 miles. Your premium can change based on your annual mileage. The average difference between auto insurance costs among those who drive 7,500 miles a year and those who drive 15,000-plus is approximately $86. Drivers may be able to save as much as $436 a year in some specific states.

Usage-based insurance

There is also usage-based insurance, which involves the installation of a telematics device in your vehicle in order to monitor your driving habits – also when and where you drive, number of miles driven, and periods of hard braking or quick acceleration. Car insurance startups such as Metromile and Root Car Insurance use their app installed on your phone or tablet to record information about your driving habits.

Privacy issues

But people have privacy concerns about this approach. Companies offering this type of insurance say this data is not shared with third parties. Current plans don’t calculate discounts based on GPS data. Your insurer’s website lists details on privacy data, which you can review at any time. The advantage of this type of program is that you only pay for what you need. Traditional insurance is driven by driving history, among other factors, including homeowner status, credit score, and age.

Which insurance is best for you?

Usage-based insurance may not be for everyone and not everyone may qualify for this discount. Additionally, Low Mileage Discount is not available in every state out there. Some drivers may get significant discounts while others will have their premiums going up. High-risk drivers, for example, may benefit from this type of deal. Whatever you do, be realistic if you drive around too much. You may not get a low-mileage discount.

Prior to deciding where to purchase auto insurance, make sure you study your options. Request a personalized quote here.

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