Let’s face it; if you drive fewer miles, you’re less likely to have an accident. And if you’re less likely to be involved in a crash, then you’re going to have a lower auto insurance rate. If you’re looking to reduce your auto insurance premium, you may want to explore ways to reduce your mileage. Once you have calculated the average number of miles you drive, you can shop around for the lowest auto insurance quotes.
Many of the nation’s leading insurers offer discounts to low-mileage drivers, depending on the state where you live. Talk to your insurance agent to find out if you’re eligible for a break on your insurance premium.
How to lower your auto insurance costs
Here are 4 ways you can reduce your mileage to reduce your auto insurance costs:
1. Take public transportation.
3. Ride a bike.
If you happen to live in a state where insurers offer pay-as-you-drive (PAYD) auto insurance, you can buy a policy based on the actual miles you drive rather than an on estimated number of miles. More than 30 states offer some form of PAYD insurance. Check with your auto insurance provider to see if a program is available in your state, before you obtain auto insurance quotes.
Texas was the first state to offer the so-called "by the mile" auto insurance. California recently passed legislation that would allow auto insurance companies in the state to offer discounted rates for drivers who don't drive their vehicles often. Methods to verify mileage include having insurance agents, mechanics or smog check facilities record the data. A device can also be used to track mileage.
A Brooking Institution report estimated that two out of three American families would pay lower auto insurance premiums, if they bought insurance on a per-mile basis. Each household could save an estimated $270 a car. PAYD insurance may be a good option for senior citizens, low-income drivers, part-time workers and others who don’t drive much.
If you drive fewer than 1,000 miles a month, or 12,000 miles a year, a pay-as-you-drive insurance plan may make sense for you as well. If, however, you drive more than 15,000 miles a year, this type of plan wouldn’t make financial sense for you. If you drive every day to work, use your car on the job or go away on weekends, then a more traditional auto insurance policy would be more appropriate.
Once you have done your research on the low-mileage plans available in your state, you are ready to shop around for lower auto insurance rates. You can call agents in your local area, contact insurance companies directly or use InsuranceQuotes.com to instantly get competitive auto insurance quotes from the nation’s leading insurance providers. Simply fill out a simple online form on InsuranceQuotes.com to find the right insurance coverage at the best possible price. Take the time to protect you and your family today.