Car Insurance Rate Discount For High Mileage Cars?
Reader’s Question:
Like age and driving record, can the number of miles driven each year be a factor in determining the rates my insurance company in Greater Newark will set for me?
Kyle
Greater Newark, DE
The more miles your car spends on the road mean the more opportunities there are for you to hit someone or for someone to hit you. You should therefore expect the possibility that your premium will be higher the more miles you expect to drive.
This rule is fairly simple and straightforward. Insurance premiums would be based on miles driven annually. The problem that may come up in basing car insurance to mileage are; how to monitor the odometer, how to maintain continuing coverage when insurance lapses in the middle of an emergency trip, and how to set up prepayment arrangements.
Drivers who are same in other respects such as age, location, gender, driving safety record – pay almost the same insurance rate if they drive 5,000 or 50,000 miles a year. Therefore, motorists who have the greatest amount of driving each year would pay the most for insurance – all other things being equal – and those who drive the least would pay the least.
But how far you drive is not much of a factor in determining your premium unlike a driver’s age and driving record. Some companies offer low-mileage discounts, but these don’t come close to capturing the actual difference in accident risk between high- and low-mileage drivers. It’s important to have discussions with your insurance agent or company if this kind of discount is being offered. Or, you always have the option to shop for other auto insurance companies to find the best rates available.
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