Low Mileage Discount on Auto Insurance

What is Low Mileage Discount?

Low mileage discount is an incentive offered by various auto insurance companies to drivers who don’t drive their vehicles often. This is done in order to reward those who drive less than the average driver and to encourage them to drive less, which helps reduce traffic and emissions. In many cases, the discount can be up to 20% of the driver’s premium. The discounts are typically offered to those who drive less than 7,500 miles in a year, though some companies may offer a lower threshold for the discount.

How Can I Get Low Mileage Discount?

To get low mileage discount, you need to provide proof of how many miles you drive each year. This can be done by showing your car’s odometer readings or providing a mileage log from your car’s onboard computer. If you drive an electric vehicle, you may be able to provide the charging records to prove your low mileage. You can also get low mileage discount by choosing a pay-per-mile insurance plan, which charges you based on how much you drive.

How Much Money Can I Save With Low Mileage Discount?

The amount of money you can save with low mileage discount varies depending on the company and the specifics of your policy. In general, you can expect to save between 5-20% on your premium. Some companies may offer more generous discounts to those who drive less than 5,000 miles per year. Additionally, some companies offer additional discounts for drivers who carpool, bike, or take public transportation to work.

Are There Any Other Benefits to Low Mileage Discount?

In addition to the financial benefits of low mileage discount, it can also help your car to last longer. Cars that are driven less often tend to be in better shape, with fewer wear and tear on the engine, brakes, and other parts of the car. This can ultimately save you money in repairs and maintenance costs down the line.

Are There Any Drawbacks to Low Mileage Discount?

The biggest drawback to low mileage discount is that it isn’t available to everyone. If you drive more than the threshold set by the insurance company, you won’t be eligible for the discount. Additionally, if you switch to a pay-per-mile plan, you may be hit with additional fees if you go over your allotted mileage.

Conclusion

Low mileage discount is a great way to save money on car insurance if you don’t drive often. The discount can be up to 20% of your premium, and it can also help your car last longer. However, it’s important to make sure that you’re eligible for the discount and that you understand the terms of any pay-per-mile plan before signing up.