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 much is a low mileage discount?
Auto insurance for low mileage is cheaper than it is for those with a long commute. Rates can be five percent higher if you drive over 6,000 miles per year versus a short commute. You could be eligible for low-mileage discounts up to 30 percent off your policy.
What is considered low mileage for insurance discount?
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 is considered low mileage per year on a vehicle?
In general, anything less than 12,000 miles per year is considered below average. However, some insurance companies may consider 10,000 miles or less as low annual mileage. Drivers can potentially receive special discounts if they drive their cars less than what’s considered average.
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.
Do insurers check mileage?
Insurers usually ask for an estimated annual mileage when you buy a policy to get an idea of how much you’ll be driving. Car policies tend to be more expensive if your mileage is high because you’re more likely to get into an accident.
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.
Which car insurance companies offer low mileage discounts?
What companies offer low-mileage car insurance discounts?
- USAA low-mileage driver discount. …
- Commerce Insurance low-mileage driver discount. …
- Farm Bureau Property & Casualty Insurance Company (FBPCIC) low-mileage driver discount. …
- American Family low-mileage driver discount. …
- Safeco low-mileage driver discount.
Does low annual mileage affect car insurance?
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.
Is insurance cheaper if you drive less?
The general rule among companies is that driving fewer miles means lower rates. In fact, there are companies that may be willing to discuss discounts for travel of 40 miles or less daily. Many companies offer special low-mileage car insurance discounts up to 30% for having a short commute.
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.
Is an old car with low mileage good?
There is no hard-and-fast rule for how many miles is too little. In general, a used car with low mileage is usually a good decision, even when mileage seems unusually low. There are some signs that could indicate the car hasn’t been driven enough.
Is a 10-year-old car too old?
More than half of a car’s original value evaporates in the first five years of ownership. … Don’t pay more than that 10-year-old car is worth. And, pick a car with a solid reputation for dependability. No car is really too old if you follow those rules.
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.
What is a fair price for car insurance?
The national average cost of car insurance is $1,592 per year, according to NerdWallet’s 2021 rate analysis. That works out to an average car insurance rate of about $133 per month.
How much is per mile car insurance?
The base rate is usually anywhere from $20 a month and up, depending on the individual. The per-mile is typically a few cents. If you drive, for example, 200 miles per month at a rate of 4 cents per mile, you would be charged $8, in addition to the base rate.