Lower mileage often equates to lower car insurance premiums. However, overestimating how long you drive can be costly. When you receive car insurance quotes, the rate will reflect this. The higher the mileage, the longer you drive.
Car insurance companies will expect you to drive a certain number of miles per year. This is based on your age and gender. If you are a woman, your car insurance premium will generally be a bit more. In general, female drivers have fewer accidents and claims. The insurance company’s calculations assume that females will drive fewer miles and not make as many claims as males do.
Low-Mileage Car Insurance Discounts
However, if you do get involved in a collision, or experience any accidents, there is no guarantee you will receive cheap car insurance if you drive a lot, especially with low mileage. Because your driving history may not reflect a very safe driving record, the insurer will see you as a higher risk than other drivers. They will charge you higher insurance premiums to offset the risk.
Drivers who frequently travel in areas with high crime rates will also be charged more. As these places are often less safe than cities where crime is relatively low, the risk of an accident is even greater. The insurance company does not want to be liable for someone who is hurt or killed as a result of their negligence. They will attempt to recoup their costs by charging drivers with high mileage more.
For drivers who are married, having low mileage is advantageous. For example, if the couple lives in a safer area, such as a suburb, then their car insurance rates will be lower. Married couples usually have more insurance coverage than single drivers do. A married couple is less likely to get into a collision and therefore, will generally pay less for auto insurance, too.
Limited Mileage Car Insurance Quotes
Many car owners have been known to overstate their age. By doing so, they can often receive lower car insurance rates. However, there is a possibility that they may not be covered properly should they ever need to use the policy.
When you shop around at different car insurance companies, ask about discounts. Some companies offer discounts if you are using a credit card for the purchase of your insurance policy. There are many others who offer discounts if you make all of your insurance payments with the same service provider.
If you do not qualify for any of the discounts the company’s policy offers, it would be worthwhile to consider asking about the possibility of obtaining one. You may find that you qualify for additional discounts, but you have to ask.
How to Save on Car Insurance?
Drivers who are married, have no history of accidents, are over 25 years old; and who own cars that are not more than ten years old can expect to pay less for insurance if they drive less miles. Drivers who have had accidents or tickets in the past may expect to pay more for insurance because these people are perceived as high-risk drivers.
However, it may still be worthwhile to drive a few miles less each day if you have a good driving record; have a clean driving history, and are not involved in an accident or ticketed. It may also be worthwhile to request a quote from a different company.
In many cases, a driver can actually save money on their insurance rate by combining their auto insurance policies with another type of policy. Many policies today have multiple types of insurance coverage, such as home, renter’s insurance, or life insurance. Drivers can save money on their monthly car insurance bill by choosing these different policies and combining them with their insurance policy.
