Low Mileage Car Insurance
If you know that you will not be driving the car you just bought a lot, you should know that the insurance companies offer discounts to those with low mileage cars. The main reason why they offer such discounts is pretty simple: the less you use the car, the smaller risk of something wrong happening. In other words, a driver that uses the car only from time to time will be less exposed to an accident and for this reason insurance companies entice clients with such discounts.
The first step you need to take in order to obtain a low mileage discount would be to get in touch with your car insurance company and tell them that from now on you will be driving the car less frequently than before. This situation occurs when you move to another area and commuting to and from work will be done in fewer miles than before. In addition, this low mileage car insurance can be applicable in the situation which you have a secondary vehicle which you only use from time to time.
You need to know that these vehicle insurance firms that can offer you discounts for low mileage in most cases take into consideration where you live and where your job is located at. As a consequence, if the employment area is close to your home, you’ll probably get better rates from the insurer. On the contrary, if getting to work implies travelling significant distances, the company will probably consider that you are not eligible for these discounts. However, not all of us take our cars to work as some use public transportation for the daily commute. If you are one of these people, make sure that you specify that to the insurance company so that they’ll shave off a few dollars from your car insurance policy. In addition, those who are involved in local car pooling are also qualified to get these discounts, at least theoretically.
If you already have insurance and the current company doesn’t offer you these discounts, you should start searching for a company that will.
You should know that some companies in the United States, Europe and Australia offer “pay as you drive” insurance, which reward when you don’t drive the car often by offering low insurance rates. As the name says, these companies will charge you based on the numbers of miles you drive your car. Two examples of companies in the United States that offer this type of insurance are Progressive and GMAC, but there are others as well.
Most likely, if you get low mileage car insurance, the company will ask you to subscribe to a tracking service like OnStar so that they will be able to find out your mileage on a real-time basis in order to benefit from those discounts.
Don’t forget that cutting down the costs of car insurance also takes into consideration other factors, like age and status for example. If you are married, the policy will be cheaper. If you have a clean driving record you will also be eligible for some discounts.
Keep in mind that most of the car insurance companies consider low mileage anything less than 7,500 miles or so, depending on the insurer. These discounts could reach even 12% so make sure that you tell your insurance company that you will be driving the car less from now on.
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