You keep more of the money in your pocket when you start saving with low mileage insurance for less frequently driven cars. It is a discount based on how often you drive your automobile. When a vehicle parked in front of your house it is hardly going to involve in a crash or cause damages to any property. That is why limited use car insurance makes sense for both policyholders and insurers.
Who Can Benefit from Low Mileage Car Insurance Policies?
Insurance is the most effective ways of protecting against unexpected vehicular losses and liability. But it is yet a large expense that drains money our of your pocket. That is why there are millions of drivers without insurance even though it is against the law in the US and most countries. There is an option that may fit many people. They can still have a car and pay low premiums by getting low mileage auto insurance. This type of policies are based on the number of miles driven.
Most people who live in urban areas can benefit from low mileage insurance discount. Most people in these areas prefer using trains or other means of transport to reach to their destinations because roads are heavily congested. They end up saving a lot of money since driving a car can be more expensive when you take cost of fuel, insurance and parking into account.
Many people prefer owning a vehicle despite having good and frequent public transport in their localities. But they may not actually drive their cars as much as they hope to do. It may be staying in the same parking spot for days. Then they can at least reduce financial burden with limited use car insurance.
Limited use auto insurance policies can be advantages for you if you drive the car for family use only, reside in a place near work and your children’s school. Another way of saving money is to have a garage to park your automobile at night. If you have a garage you should inform your insurer and ask for additional discounts.
What Is Considered Low Mileage for Car Insurance?
You can get really cheap low mileage vehicle insurance if they drive under 3000 miles a year. You can still ask for considerable discounts when you go over 3000 miles but stay under 7,000 miles a year. That would be car insurance drive less than 25 miles a day on most days. Considering you don’t drive at all in many days it would be less than 7,000 miles.
Drive less than 50 miles per day insurance is applied to an average motorist. When you start driving a little bit more you are considered a frequent long mile driver and expected to pay more than average.
It is important to have a good look around and get a few auto insurance quotes for a less frequently used car. It is also seen as a way of saving money for people who have more than one vehicle. This is because there will be no way the person will be driving both cars at the same time. This means that there is a car that is used occasionally and this can help in saving more money. Occasionally used automobiles should be insured at a reasonable cost. The risks are not as high as it would be when a vehicle is used long hours every day.
Types of Low Mileage Car Insurance Policies
Discounted Auto Insurance for Low Mileage Drivers: You can get auto insurance low mileage discount on a standard policy for driving only occasionally. Many insurers can quickly reduce their rates based on yearly mileage declared by the policyholder. They may require proof of mileage from time to time but they don’t need you install any gadget to prove your mileage.
Pay As You Go Car Insurance: These policies are based on fitting a telematics device that transmit information back to your insurer from your car. There are several insurers that offer such policies. They collect information about your driving patterns as well as your mileage. You don’t necessarily need to drive less to benefit from these types of policies. If you are a young person or had a premium increase due to recent accident you can still get cheap car insurance by minding your driving since you will get credits for staying within speed limits, avoiding braking and late night driving.
Pay Per Mile Insurance: There are couple of insurers that offer pay per mile insurance that is strictly based on yearly driving distance. You need to install telematics on your car that will only transmit mileage information back to the insurer. These policies can be beneficial for drivers who drive less than 10,000 miles a year. You can find out more if you follow the link.