If you live close to school or work, you probably drive fewer miles a year than someone else who has farther to commute. Low annual mileage on your car means you can find discounts on auto insurance rates. Bring up the low mileage you drive each year when asking insurers about reduced premiums while shopping for insurance. If you already have car insurance, contact your agent if changes have resulted in lower car mileage since buying the policy.
Reduce Risk Factors
As a young driver, you probably know about higher insurance rates for people up to age 25. Insurers figure out rates based on risks. Young motorists have higher accident risks than older drivers because of inexperience behind the wheel. An excellent driving record helps lower your premiums, but you can also use risk factors for low car mileage to your advantage. Insurance companies have lower rates for cars with fewer annual miles because it reduces the risk of accidents.
Look for Mileage Discounts
Auto insurance firms set different limits when defining low car mileage, but figures usually range from 7,500 to 15,000 miles a year. Some companies don’t offer discounts for low mileage use. If you have a car insurance policy that doesn’t offer a discount and find another one that does, know your current company’s policy on cancellation. You could be charged extra fees for getting out of the policy early.
Keep Insurers Updated
Insurers usually consider your home, school or employment location when you apply for insurance. If they don't mention reduced rates for low mileage, ask about them. Let the insurer know if you use public transportation or carpool to work. Contact your current insurance provider if you’ve made any changes that allow you to drive less since beginning the policy. You might have moved to an area that provides more public transportation or maybe you drive to a new school or job that’s closer to home. You could immediately lower your premiums, depending on the company.
Pay as You Drive
Companies such as GMAC and Progressive offer pay-as-you-drive insurance programs for motorists who drive less than 10,000 to 15,000 miles a year. The programs specialize in charging lower premiums for people who don’t drive very often. Autos.com reports that you can get up to 25 or more than 50 percent discounts on your insurance. The program might involve attaching a device to your car’s odometer or other requirement. You can ask current or prospective insurers if they offer this program.
Jerry Shaw writes for Spice Marketing and LinkBlaze Marketing. His articles have appeared in Gannett and American Media Inc. publications. He is the author of "The Complete Guide to Trust and Estate Management" from Atlantic Publishing.