Is there an insurance discount for low mileage?

The average American drives 12,000 miles per year, but car insurance companies usually consider you a low-mileage driver if you drive less than 7,500 annual miles. Not only does this save you money on gas and wear and tear on your vehicle, but it could also snag you a discount on your auto insurance rates.

What is considered low mileage for insurance discount?

Most insurance providers consider someone who drives between 0 and 7,500 miles per year a “low-mileage driver.” Most insurance consumers are initially rated by default at the standard U.S. average mileage of 12,000 miles per year.

Is auto insurance cheaper if you drive less?

It’s important to note that insurance regulations vary by state. … According to Insure.com, drivers in California typically get about an 11 percent low-mileage discount. Low-mileage insurance is a smart choice if you don’t drive often or many miles.

How many miles is low mileage discount?

The mileage cap to qualify for the low-mileage discount varies by state, but drivers typically need to drive between 7,500 and 15,000 miles a year or less. Take a look at Direct General reviews to see what customers say about car insurance with this company.

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What if I drive more miles than my insurance?

Why does my annual mileage matter? Car insurance premiums are based on risk. The further and more often you drive, the more likely you are to be involved in and accident and need to make a claim. So, the higher your annual mileage, the higher your premium is likely to cost.

Can insurers check mileage?

Insurers can check your MOT history to validate your mileage

So if you lie or significantly underestimate your annual mileage your cover could be invalidated.

Is it better to pay car insurance monthly or every 6 months?

Whether you choose a 6-month or 12-month car insurance policy, it’s always better to pay in full. When you make monthly payments, you’ll probably be charged slightly more on your premiums and may also be subject to additional payment processing fees if you pay electronically.

What should I put for annual mileage?

Multiply the weekly mileage figure by 52 to give annual mileage. Make sure you choose a week that is representative of your normal driving routine. Add 5 percent to the annual mileage figure to cover unplanned trips and as an error margin. To calculate this, first multiply the annual mileage by 5.

How do you qualify for a low mileage discount?

As long as you keep your annual mileage under the approximate 12,000 miles per year, you don’t pay any fees with a lease. If you keep your mileage at or below the number you discuss with your provider, you get a discount on your premium.

What is considered very low mileage?

Some companies consider anything under 12,000 miles per year to be low mileage. Others consider anything under 10,000 miles to be low mileage. And yet others will only consider you a low-mileage driver — and reward you for it with better rates or a discount — if you drive less than 5,000 miles per year.

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