Low Mileage May Mean A Discount

A common discount for American drivers is one that they frequently miss out on: low mileage. By asking an auto insurance provider, drivers can find a multitude of savings, including some that correlate to their daily mileage.

Save based on your commute

For drivers with little to no commute, their car insurance quote could be considerably less than for those with long daily drives. A study conducted by Quadrant Information Services found someone who drives 5,000 miles per year saves up to 8.4 percent more than someone who drives 15,000 miles per year, according to the Huffington Post.

If you recently moved and your car now sits idle in your garage due to your proximity to work or to public transportation, you could be saving a fair amount of money on a car insurance quotes.

It's all about risk

Since a greater risk of an accident is associated with a driver with more mileage, car insurance premiums tend to go up. Quotes frequently increase when there are more motorists on the road, so insurers in states like California tend to charge more for auto insurance. Charging higher rates for those who drive more miles is considered to be a fair way to charge for car insurance, in comparison to charging based on income and or education level.

Talk to your insurance provider

If you're looking for a way to save on insurance and you also drive fewer than 5,000 miles a year, make sure to discuss it with your auto insurance provider. If your company doesn't offer it, shop around and see if you can find another in your area that does. Secondly, ask about an in-car monitor. Although some may see this as an invasion of privacy, having this machine installed in your car can give your insurance agent an accurate idea of how long you're spending on the road.

For those who don't use the in-car system, it's important not to lie about the mileage you drive annually. By misrepresenting the number of miles you drive in a year, your insurance can be taken away or bumped back to its original price. This seemingly simple act is an example of insurance fraud. Additional ways to lower your car insurance rates are to avoid getting tickets for moving violations and to shop around for the right car insurance quote for you.

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