Are you driving fewer miles per year? Can you save on car insurance? One factor that influences the price of car insurance is the number of miles you drive per year. Insurance companies trade in risk. The longer a car is on the road, the more exposed it is to accidents and, consequently, the more insurance it should pay.
Insurers reward drivers who drive about 5,000 miles a year with better premiums. Few people know that drivers who exceed 5,000 up to 7,500 miles generally pay a 10% higher rate. Those who surpass 7,500 miles up to 10,000 see a 7% increase. For those exceeding 10,000 miles up to 12,000 annually, it goes up by 4%; beyond 12,000 miles, the rate can increase by 25% compared to the previous segment. Now you’ll understand why, when you take out car insurance, they’ll ask how many miles you typically drive per year and if you use your vehicle every day.
According to the Federal Highway Administration (FHWA) of the Department of Transportation, American drivers drive an average of 13,000 miles annually.
Consider the new mileage-based auto insurance option if you drive a few miles yearly. It’s a flexible rate based on the miles the insured vehicle travels. If you opt for per-mile insurance, your insurer will monitor your vehicle using a GPS tracker, and you’ll pay monthly based on the miles you drive. You’ll only pay a meager base rate if you don’t use the car because you work from home.
However, if you use the vehicle for more than 10,000 miles a year, this method is not advisable because it will cost you more.
As you can see, saving on your car insurance is possible. If you’re interested in reducing your payments, all you have to do is contact Univista Insurance. Are you driving fewer miles per year? Can you save on car insurance?
Give us a call today for a comprehensive quote! (305) 985-4126. You can also get a free quote here.
