Amount of Miles Driven Can Lower Auto Insurance
Since you last renewed your auto insurance policy, you may have changed jobs and not be driving as far to and from work in your new position. You may have retired and greatly reduced the amount of driving you do on a week to week basis. Perhaps you received use of a company car that no longer requires you to use your personal car on business errands. Or you may have started a business from home that doesn’t require you to drive to and from an office. Maybe you have joined an office carpool and are leaving your car in the garage four days out of five. Any of these scenarios that decrease the amount of miles you drive may qualify you for a low mileage discount on your automobile insurance premiums that could represent a savings of at least 10 to 15% of your total annual premiums.
Going the Extra Mile may not be Beneficial
Auto insurance companies are willing to give drivers a price break who record less than average mileage on their odometers because the less miles you drive, the less chance you have of getting into an accident that requires you to file a claim against your insurance company. One of the main questions your insurance agent always asks when determining your premium is how many miles you drive on an annual basis. There is usually a discount applied to your premium if you don’t drive more than 7,500 miles within a 12 month period, with the next discount offered to those who do not register more than 15,000 new miles driven within a year’s time.
Mind Your Mileage
Some individuals don’t pay attention to the amount of miles they drive each year and often miscalculate, thinking they actually drive more miles when they are in reality driving less miles. It can pay to do a little research and record the miles you drive each time you get into your car over the next 30 days and then multiply that by 12. Then check the statistics on your current insurance policy to determine if you are considered to be in the “low mileage” category that can qualify for a discount.
If any of your life circumstances have changed since you last applied for a car insurance policy or renewed your current policy, be certain to compare how the amount of miles you have driven has also changed. You may be pleasantly surprised to find that you can call your insurance agent and report you are now in the lower mileage category that enables you to qualify for a low mileage auto insurance discount.