Most insurance providers consider someone who drives between 0 and 7,500 miles per year a “low-mileage driver.” Most insurance consumers are initially rated by default at the standard U.S. average mileage of 12,000 miles per year. However, some motorists drive far fewer than 12,000 miles per year.
Do insurance companies give discounts for low mileage?
The average American drives 12,000 miles per year, but car insurance companies usually consider you a low-mileage driver if you drive less than 7,500 annual miles. Not only does this save you money on gas and wear and tear on your vehicle, but it could also snag you a discount on your auto insurance rates.
Is auto insurance cheaper if you drive less?
It’s important to note that insurance regulations vary by state. … According to Insure.com, drivers in California typically get about an 11 percent low-mileage discount. Low-mileage insurance is a smart choice if you don’t drive often or many miles.
What is a low mileage driver?
If you drive less than 37 miles per day, you’re likely a low-mileage driver. And you’re not alone. Two-thirds of American drivers drive less than the national average of 37 miles per day, which amounts to a whopping 147 million people.
How many miles is low mileage discount?
The mileage cap to qualify for the low-mileage discount varies by state, but drivers typically need to drive between 7,500 and 15,000 miles a year or less. Take a look at Direct General reviews to see what customers say about car insurance with this company.
Why are low mileage cars bad?
Kelley Blue Book reports older low-mileage cars can also develop tire dry rot, as well as have heater and radiator components fail. And having any motor vehicle sit on its tires for long also risks developing tire flat spots.
How many miles is low for car insurance?
Most insurance providers consider someone who drives between 0 and 7,500 miles per year a “low-mileage driver.” Most insurance consumers are initially rated by default at the standard U.S. average mileage of 12,000 miles per year.
Does mileage make a difference to car insurance?
Car insurance premiums are based on risk. The further and more often you drive, the more likely you are to be involved in and accident and need to make a claim. So, the higher your annual mileage, the higher your premium is likely to cost.
Can insurers check mileage?
Insurers can check your MOT history to validate your mileage
So if you lie or significantly underestimate your annual mileage your cover could be invalidated.
What happens if you lie about mileage on insurance?
When policyholders lie about how much they drive, insurance providers will work with erroneous data and inaccurately calculate risk. The result is a large amount of premium leakage for insurance companies every single year. More than half of drivers underreport their annual mileage to insurance companies.
What’s annual mileage mean?
Average mileage per year is the amount of miles motorists typically travel each year. Average mileage per year is the amount of miles motorists typically travel each year. …
How do you qualify for a low mileage discount?
As long as you keep your annual mileage under the approximate 12,000 miles per year, you don’t pay any fees with a lease. If you keep your mileage at or below the number you discuss with your provider, you get a discount on your premium.
What is AAA mileage discount?
At AAA Auto, you can save up to 10 percent with a AAA low mileage discount. You will be required to submit your odometer readings when requested to qualify for the AAA mileage discount. These discounts vary depending on what region of the United States you are in.
What is considered low mileage per year on a vehicle?
In general, anything less than 12,000 miles per year is considered below average. However, some insurance companies may consider 10,000 miles or less as low annual mileage. Drivers can potentially receive special discounts if they drive their cars less than what’s considered average.