What Is Low Mileage Auto Insurance?

Low mileage car insurance is a type of auto insurance for people who do not drive their automobiles very often. Drivers who agree to stay within particular limit related to the number of miles a vehicle is being driven in a year are offered a low mileage insurance policy by different car insurance companies. If driver fails to stay within this limit, his auto insurance policy may be either cancelled or converted to a regular mileage policy.

Low mileage auto insurance is useful for those drivers who use their vehicles rarely or occasionally.

How Low Mileage Car Insurance Companies Can Help You?

In need of a low mileage auto insurance that fits your budget?

To find competitive or cheap low mileage car insurance, all you need to do is to fill a simple non-obligatory application form and submit it. We can give you the best low mileage car insurance quotes from nation’s top different auto insurance companies.

Majority of car insurance companies offer appealing and tailored auto insurance packages which are specifically designed for consumers who drive less than average number of miles. Low mileage auto insurance package thus also intends to help drivers to minimize the possibilities of causing car accidents. Such accidents also result in financial problems for buyers. If buyer drives fewer miles, he may qualify for a low mileage insurance discount and at the same time prevent unmanageable debts from taking place by adhering to the mileage limit and preventing accidents.

The requirement of the limit of the mileage depends on particular car insurance company. Most of the insurance companies may give low mileage insurance discount which involves the limit of 7,000 to 15,000 miles; if miles decrease gradually, discount can also enable buyer to pay less. The lower the risk car insurance company perceives, the lower the insurance rates buyer will have to pay. Under this type of car insurance, lower annual miles on buyer’s car means he will have fewer chances of being involved in a car accident which will ultimately make him a low-risk driver. Apart from reducing the risk of car accidents in the U.S., this form of car insurance also extends financial help to buyers and covers many mishaps. Thus, with fewer payments, you can get enough protection with auto insurance low mileage discount.

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Which Type Of Low Mileage Car Insurance Will Serve You Best?

Car insurance low mileage can be implemented in several ways. Some auto insurance companies will simply offer discount in buyer’s regular premium if he drives fewer miles in a year. To qualify for this type of low mileage car insurance discount, buyer will have to verify his car’s mileage at the beginning and end of the entire coverage period. This discount is considered only a small part of buyer’s total auto insurance cost.

Under another type of low mileage discount, the policy assumes that buyer will not exceed his mileage limit during the coverage period. He will have to verify his mileage at the beginning and end of the period of coverage. If he exceeds predetermined mileage limit, he will require negotiating with his auto insurance company in order to determine his premium amount. It may be possible that the company adds charge for the extra mileage. However, in some cases, borrower will have to convert his low mileage car insurance policy to a regular coverage policy.

“Pay as you go” is a type of car insurance for low mileage drivers wherein premium is based on the amount of mileage buyer accumulates during the coverage period. There is a device installed in his car which records buyer’s travel time as well as mileage and reports the same directly to the auto insurance company. For people with unpredictable driving patterns, this kind of auto insurance will work best because the premium can change from one coverage period to the next period and buyer can save significant amount of money during the time when he does not use his car often. With “pay as you go”, the auto insurance company itself takes the job of calculating buyer’s mileage and adjusting his rates.

  • Your driving record.
  • Your vehicle’s safety record.
  • How often you use the car (especially if you do not drive your car to work).
  • Home ownership.
  • Smoking status.
  • Where you keep the car.

Beneficial Tips On Getting A Low Mileage Car Insurance Discount

Low mileage car insurance discount helps motorist reduce the cost of his coverage and also secure the required protection in the event of an accident, theft or specific mishap.

1. People who drive less than 15,000 miles per year could get a discount between 13 to 54 percent in their rates.

2. Discount of up to 25 percent could be provided to motorist who drives less than 10,000 miles, is a defensive driver and does not drive after midnight. Buyer’s driving behavior, including the number of miles, is monitored through a device installed in his car.

3. “Pay as you go” is another way to qualify for reduced premium amount. The more one drives, the riskier he is considered by the insurance company.

4. If buyer is offered low mileage car insurance, he may be required to subscribe to tracking service in order to determine his mileage. Having access to such a service can help one to save money.

5. Car insurance low mileage discount is available for the residents of the following states:

  • Alabama
  • Colorado
  • Arizona
  • Florida
  • Georgia
  • Idaho
  • Illinois
  • Indiana
  • Kentucky
  • Louisiana
  • Maryland
  • Michigan
  • Minnesota
  • Mississippi
  • Missouri
  • Montana
  • Nebraska
  • Nevada
  • New Hampshire
  • New Mexico
  • New York
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Utah
  • Virginia
  • Washington
  • West Virginia
  • Wisconsin

Check How Much Car Insurance You Need If You Use A Car Rarely

Majority of the states require some form of liability insurance if one drives his car even for few miles in a year. But, if buyer’s car is in storage, he can qualify for a “no-mileage” policy. This kind of policy will cover his car if someone gets injured on or around it when it is a stationary. “No-mileage” policy typically is low in cost and also covers damage to the vehicle in the event of fire or other disaster. Thus, buyer can convert his regular policy to a storage policy when he stops using his vehicle.

There are many factors such as buyer’s age, gender, his location, the make and model of his vehicle, etc. which affect his premium. In fact, poor driving record may also enable buyer to pay more for his car insurance, regardless of his mileage.