Qualifying for discounts on your auto insurance is a great way to reduce the premiums on your policy, and one discount you might qualify for is a low-mile discount. Drivers who do not put a lot of miles on their cars each year often pay less for their auto insurance, and here are a few things you should know about this:
What is considered low mileage?
The first thing to understand is that there is no set formula that tells you exactly what low miles means. Instead, every insurance company has their own set of rules when it comes to qualifying for a low mileage discount. Most insurance companies base normal driving habits at around 12,000 miles per year, give or take. If you drive less than this, your insurance company might offer you a discount. Other companies have set amounts that people must prove they drive, such as 5,000 miles a year, or 8,000 miles a year. If you drive less than the amount your insurance company sets as this standard, you might be eligible for a discount.
Why do companies give discounts for low mileage?
Everything with insurance is about risks, and people who drive less are of a lower risk to the insurance companies. If you only drive 1,000 miles a year, for example, you would have a much lower risk of being in an accident than if you drove 10,000 miles a year, simply because you are on the roads a lot less. As risk level decreases, your premiums will follow.
How can you reduce your mileage to qualify for this discount?
If you are interested in qualifying for this discount but currently drive too much for it, there might be things you can do that will reduce the mileage you drive. For example, maybe you could move closer to your work or find a job that is closer to home. Some people reduce their mileage by finding a job they can do from home, while other people will find other drivers to carpool with.
What is a usage-based program?
The other thing you could consider doing is signing up for a usage-based program. This is a program offered by some insurance companies that allows people to control how much they spend on car insurance by charging them a set fee per mile. If you drive very few miles each month, this might be a good option to consider, but it is not a good option if you drive a lot.
If you are interested in learning more about low mileage discounts or other types of discounts, contact an auto insurance company today.Share