Auto Insurance for Low Mileage Drivers

The longer a vehicle stays on the roads the higher the chance of getting involved in an accident. This is well documented with statistical data and therefore companies recognize and offer cheap insurance for low mileage drivers. Even though they may not drive much many people like to keep cars. Having an automobile in your possession gives you independence.

Many people work from home thanks to internet technology. Elderly people do not go out much but still like to keep a car to go out and about for grocery shopping and other basic needs like doctor appointment. Some students live in campus accommodation and they do not need a vehicle to travel to lectures but still want a car handy.

What Are Commonly Used Car Insurance Mileage Brackets?

When giving quotes companies like to know how many miles you travel every year. The premiums changes according to usage. 3,000 miles or less is for rarely driven cars like classics or seasonal vehicles. Driving below 7,000 miles is a low mileage usage. Around eighty percent of people are estimating to be driving between 7,000 and 12,000. So, this must be a regular type of driving in a year. Over 25,000 miles a year is considered frequent drivers.

The purpose of using cars affects the number of miles driven. If you are a salesman you are likely to drive a few miles a year going to meetings and appointments. Also, some people get company cars and still keep their private vehicles. They are much less likely to drive long distances. People can run a few thousand miles a year only for pleasure as well. Normally, going around picking children from school, carrying out basic necessities like shopping can easily run you around 10,000.

How Much Is Car Insurance for Low Mileage Drivers?

The difference in premiums between up to 7,000 and over 25,000 can be as much as twenty to thirty percent. People driving less than 3,000 miles a year can get really cheap auto insurance rates with limited mileage insurance policies. Beware that some companies would want a proof of odometer reading. As long as this remains the same and you can prove you continue to get discounts with low mileage insurance policies.

The size of discounts on auto insurance for low mileage driving can depend a lot on the insurer you are with. The discounts range from five to fifteen percent. Some companies offer it to drivers driving 7,500 miles and other may offer discounts below 10,000 miles. Therefore, it is highly advisable to get several quotes from other insurers as well when your driving habits are changing considerably. A previously competitive current insurer may not be so good any more.

Some companies may like to make a song and dance about their discounts. However, most quotes wouldn’t document each types of discounts and how much you get. They would just reduce overall rates applied to you. Still, you can check with an agent if you are receiving any discount on vehicle insurance for low mileage drivers.

When you are comparing quotes from various companies you may look at the premiums on offer based on the coverage requirement set. If a company is offering you lower rate than the rest it can be assumed that it provides more discounts overall. So, would you mind it as long as you have a great price and good coverage even though they may not offer much discount for low mileage?

Most companies estimate the auto usage based on your particulars. They assume that you are going to commute to the work when they are calculating the likely mileages you cover. If you are living in a metropolitan like New York, it is probably easier, faster and cheaper to take the subway or train to work. If this is the case you should point this fact out to your vehicle insurer. They can offer pleasure use car insurance and save you considerable amount of money especially when you take big city premiums into consideration.

Most service records include the mileage at the time of service. Otherwise, you could make a note of the mileage at each renewal time and see how many miles you would be traveling with your car next year. It would be nicer and fairer to be accurate about this figure. Besides you may get asked.

Another alternative to limited driving policies is pay as you drive insurance that can reduce premiums considerably, especially just after a recent traffic ticket or accident and for young drivers. One downside of these policies is that they can be limited to certain states and not available in your area.

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