Drive Much? The More You Do…The More You Pay
—New State-By-State Study Unveils Impact of Mileage on Insurance Rates—
AUSTIN, TEXAS (August 17, 2016)—When you apply for an auto insurance policy, a key question is how many miles you drive each year. What may surprise you is how much your answer affects your premium.
According to new data from insuranceQuotes, a policyholder who drives 15,000 miles a year pays a national average of 8.61% more for car insurance than an insured who drives 5,000 miles.
“Most consumers aren’t aware of the relationship between mileage and auto premiums,” said Laura Adams, senior insurance analyst for insuranceQuotes. “If your daily commute decreases, be sure to notify your insurer quickly so you don’t overpay for coverage.”
Rate increases related to mileage vary dramatically depending on where you live. States with the highest rate increases for driving 15,000 miles compared to 5,000 per year are as follows:
- California — 26.15%
- Alaska — 10.45%
- Washington, D.C – 10.2%
- Alabama — 9.82%
- Massachusetts — 9.79%
Adams says, “Drivers in the most expensive mileage states have the most to gain from reducing mileage. But if you can’t, be proactive and seek potential discounts at least once a year.”
North Carolina is the only state where drivers don’t see any rate changes when annual mileage increases. Several states—such as Utah, Rhode Island, Texas and Connecticut—show negligible changes.
The full report—which includes rankings of all 50 states and the study methodology—is available at /auto/mileage-driven-insurance-081616.
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