You could save up to 5% on your car insurance if your vehicle is driven under a certain mileage on an annual basis. The mileage cap varies by auto insurance company and state, but is generally between 7,500 and 15,000 miles.
How many miles is low-mileage discount?
The mileage cap to qualify for the low-mileage discount varies by state, but drivers typically need to drive between 7,500 and 15,000 miles a year or less. Take a look at Direct General reviews to see what customers say about car insurance with this company.
How can I get a low-mileage discount?
Telling your insurance provider how many miles you drive per year is one way to get a low-mileage discount. To do this, you usually estimate your annual mileage for your insurer when you sign up for a policy.
Do insurance companies give discounts for low-mileage?
The average American drives 12,000 miles per year, but car insurance companies usually consider you a low-mileage driver if you drive less than 7,500 annual miles. Not only does this save you money on gas and wear and tear on your vehicle, but it could also snag you a discount on your auto insurance rates.
What’s considered low annual mileage?
Most insurance providers consider someone who drives between 0 and 7,500 miles per year a “low-mileage driver.” Most insurance consumers are initially rated by default at the standard U.S. average mileage of 12,000 miles per year. However, some motorists drive far fewer than 12,000 miles per year.
What should I put for annual mileage?
Multiply the weekly mileage figure by 52 to give annual mileage. Make sure you choose a week that is representative of your normal driving routine. Add 5 percent to the annual mileage figure to cover unplanned trips and as an error margin. To calculate this, first multiply the annual mileage by 5.
What if I drive less than 25 miles a day?
Car insurance has a basis on the concept of risk. The more mileage you cover, the more likely you can get into an accident. Most insurance companies use your average yearly mileage to calculate their car insurance rates. So it is very likely that you will pay lesser premiums if you drive for less than 25 miles daily.
Does Liberty Mutual have low mileage discount?
Typically, low-mileage customers with ByMile could save an average of 25% compared to a traditional auto policy. The extent of your savings is based on your mileage.
What is AAA mileage discount?
At AAA Auto, you can save up to 10 percent with a AAA low mileage discount. You will be required to submit your odometer readings when requested to qualify for the AAA mileage discount. These discounts vary depending on what region of the United States you are in.
Why do insurance companies ask for mileage?
Why does my annual mileage matter? Car insurance premiums are based on risk. The further and more often you drive, the more likely you are to be involved in and accident and need to make a claim. So, the higher your annual mileage, the higher your premium is likely to cost.
What if I drive less than 50 miles a day?
If you drive less than 50 miles/day and live in a qualified zip code you can get an extremely high discount. This is the one simple truth your car insurance company doesn’t want you to know. Additionally, if you have no DUI’s, you can get even more discounts.
Is there low mileage insurance?
SmartMiles is car insurance for low-mileage drivers. It’s the same great coverage as a traditional Nationwide auto policy, but with a flexible monthly rate that’s based on how many miles you drive.
What happens if you lie about mileage on insurance?
When policyholders lie about how much they drive, insurance providers will work with erroneous data and inaccurately calculate risk. The result is a large amount of premium leakage for insurance companies every single year. More than half of drivers underreport their annual mileage to insurance companies.
What is the average annual mileage for a car?
On the other hand, Oklahoma posts just 44 billion miles each year (85 percent less than California), but each driver averages 17,700 miles, far more than the average American.
Average miles driven per year in each state.
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What annual mileage means?
Average mileage per year is the amount of miles motorists typically travel each year. Average mileage per year is the amount of miles motorists typically travel each year. …
Is 15000 miles a year a lot?
As a general rule of thumb, 15,000 miles a year is considered an “average” number of miles per year.