You can get low-mileage car insurance from several insurance companies if you are someone who drives infrequently. Insurance companies provide options for drivers who drive short distances, as well as for those who demonstrate safe driving practices.
Some of the options include discounted premiums for driving under a certain mileage, plans that are priced based on how you drive, or coverage from companies that provide policies exclusively based on driving distance and behavior data. Geico’s Drive Easy and Allstate’s Drivewise are two notable examples of programs that price premiums based on a driver’s actual habits.
Availability varies by company and state, but taking advantage of low-mileage coverage or discounts when it makes sense can be a great way to save money on auto insurance.
Most insurance companies quote premiums based on a standard average number of miles driven each year – typically, 12,000 miles annually. If you drive an average of 7,500 miles per year or less, most insurance companies will consider you a low-mileage driver, and will adjust how they calculate your premium accordingly. You can contact your insurance company to discuss readjusting how your premium is calculated, based on your lower-than-average annual mileage.
The price of usage-based insurance coverage depends on how many miles you drive per year, and in some cases, your driving behavior. Typically, insurance providers will ask you to download a phone app or they will send a device that you attach to your car. The phone app or device will monitor how far you drive, and in the case of telematics devices, how you drive. The company will then use the data it gets to calculate your insurance rate. So, if you drive less and generally don’t exhibit unsafe driving behavior, such as accelerated breaking, your insurance rate will be lower. Companies like Progressive, Geico, Allstate, State Farm and Esurance all provide usage-based or telematics insurance packages.
Low-mileage drivers can save on auto insurance by finding coverage from usage-based companies. These companies operate on a pay-as-you-go model, meaning the less you drive, the more you save. Two such companies are Metromile and Root. If you do not drive frequently, one of these companies might be a great way to obtain low-cost car insurance.
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