Car insurance average mileage a year
- Usually insurance costs more for a new car. However, if you have an antique or classic car, insurance is more expensive despite having fewer miles on the vehicle
- For everyday cars, the more mileage you put on your car, the more you are using it and the risk of damage increases which means insurance providers will charge more for coverage
- Insurance companies charge you according to the potential costs you present to them. Therefore, the less you drive, the less you will usually pay
While there are many factors that affect the rates of your car insurance, mileage is one of the bigger, ongoing ones. The mileage on your car will make a difference in what you pay when you first insure it, but the miles you put on your car afterward will also have a substantial impact.
No matter how many miles you have, you can always get a cheaper rate by entering your zip code now to get multiple car insurance quotes.
Reducing Your Car Insurance Mileage
When you buy a car you certainly don’t buy it with the intention of storing it in a garage for rare, occasional use. Unless, of course, the car is a show car or a project car! In that case, look into very specialized antique or classic car insurance.
Therefore, plan on putting miles on your car and plan on your insurance possibly going up as a result of it. One of the best ways to avoid an increase in your car insurance premium is to keep your mileage to a minimum.
When you first insure your car, your insurance company will ask you how many miles you estimate your car will be driven annually. Try to keep this number as accurate as possible. If you underestimate the mileage, your car insurance premium can easily increase.
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Insurance companies will periodically ask how many miles you have on your car. It is never a good idea to cheat on your car insurance, so even if you are tempted to lie about this, don’t do it.
The only person you are hurting is yourself, especially if you have a claim that can’t be substantiated by your mileage.
Imagine if you tell your car insurance company you only have 10,000 miles on it when you have 17,000 miles. Although it seems like a small white lie, it can technically be considered insurance fraud; and this type of insurance fraud will only save you a minute amount of money.
Yes, you may benefit from a low mileage discount, but it’s not worth the cost of losing your coverage.
The insurance company will most likely not come to your house to verify your car’s mileage. However, if you have any accident or any insurance claim, your mileage will be reviewed by the insurance adjuster and the repair shop.
If this happens, your world could crumble around you if your mileage is not close to what is expected.
Your insurance claim can legitimately be denied, leaving you financially responsible for all damages involved. You can also be held liable for insurance fraud, which would cause a hassle because it would have to be proven in a court of law.
Estimating Car Insurance
The best way to avoid problems with your car insurance and still pay a fair rate is to be honest and calculate your mileage as accurately as possible. If your mileage varies widely on an annual basis, discuss this exception with your car insurance agent.
Otherwise estimating the mileage for your car insurance is relatively easy. The initial mileage on your car becomes negligible once you buy your car insurance. So, after you report your beginning mileage you only need to determine how many miles you drive on an annual basis.
Clock how many miles you drive to work and back and then calculate your annual usage for using your car for work. Add personal usage to your mileage as well.
It is also a good idea to include your annual road trip for your vacation. If you drive 500 miles one way every summer to visit your aunt in a bordering state, add 1,000 miles to your mileage estimation.
The difference may not increase your insurance premium at all, but at least you will have appropriate coverage.
The insurance company is not going to hold you to every mile you estimate. They use your estimate to gauge if you drive 7,500 miles or less every year or if you drive more than 10,000 miles every year.
It is in your best interest to give a fair assessment of your estimated mileage to your insurance agent so that your insurance premium is calculated correctly.
If you are not a regular driver, your car insurance should be somewhat less than the person who wears out a car every couple of years. Mileage of 7,500 or less annually is usually considered average and should garner you a fair rate.
Shop around to avoid paying too much for your car insurance. Enter your zip code now to compare car insurance quotes!References:
Working out your annual mileage
Do you know how many miles you’re driving per year? Now it’s easier to get it spot-on using the annual mileage table from Direct Line. Track the miles you’re covering on a typical day or week and then check the table below to find the approximate annual figure.
Another option is to use the mileage recorded on your car between MOTs as a guide. When calculating the miles you’re doing within a year always try to be accurate. Underestimating your annual mileage could invalidate your policy.
If you drive more than 50,000 miles per year then you should give us a call on 0345 246 8701.
Annual mileage conversion table
|Miles you drive approximately in a typical day||Miles you drive approximately in a typical week||Miles you approximately drive up to in a year|
How much you drive can have an impact on the price you pay for car insurance. However, calculating how much impact your mileage will have may be tricky as insurance companies often use different standards to determine who are “high mileage” drivers and how much the mileage will affect premium rates.
What Is A High-Mileage Driver?
Every insurance company is free to set its own definition of a high-mileage driver. Most companies consider driving between 12,000 and 15,000 miles per year about average, but some companies have both lower and higher limits before high-mileage premiums kick in.
Many companies assess higher premiums if the driver goes over the mileage limit for the year. This is because a driver theoretically has a greater risk of being involved in an accident for every mile he or she travels on the road. Drivers who frequently travel long distances experience more exposure to traffic in large cities and other congested areas and may also suffer from sleep deprivation on long drives, leading to greater risk of an accident.
On the other hand, drivers who do their driving primarily on rural roads may not have as much risk of an accident as someone who commutes every day in heavy city traffic. Therefore, insurance companies have varying policies on what they consider high-mileage risk and how they assess that risk.
Do All Companies Assess High Mileage Risk?
Some companies do not assess higher premiums for high mileage but rather allow certain drivers to get low-mileage discounts. This may be easier for the insurance company to track as it puts the burden upon the driver to prove he or she has not driven more than a certain number of miles per year.
In order to get a low-mileage discount, some companies require the driver to stop by an office periodically to have their odometer checked. An employee of the company will take down the odometer information and enter it into a database. As long as the driver has not gone over the mileage needed for the discount, he or she should automatically receive lower insurance rates.
Other companies assess mileage through the use of electronics. Some companies will allow their customers to plug a computerized component into the dashboard that records the number of miles driven in a certain period of time. These computerized devices may also record other information to give a picture of the driver’s behavior and qualify him or her for other discounts.
What Is A Storage Policy?
A “storage” policy is a car insurance liability policy designed for those who have a car that is rarely if ever driven. If a car is stored, it is not out on the road very often; in fact, it may never be driven beyond the confines of a driveway. Many valuable collector cars are never driven as this may lower their value. Instead, they are moved by trailer from one location to another. Other drivers may have a car that is stored the majority of the year, such as a car at a vacation home.
While some standard car insurance companies offer storage policies, a specialty insurance company may have better offers for those with special auto insurance needs.
In fact, some insurance companies specialize in insuring valuable collector vehicles and customize cars by allowing owners to determine the value of the policy. The more insurance the owner wants, the higher the price of the policy; however, owners are free to insure valuable vehicles for their full worth. These policies are often very reasonable in cost as they are covering cars that are rarely driven.
What Should I Do If I Drive Many Miles A Year?
The most important thing to do if you are a long-distance or frequent driver is to shop for car insurance from a company that will offset the higher cost of coverage with other factors. If you drive long distances but rarely visit large cities, for example, you should be able to negotiate a lower car insurance premium price. Another alternative is to look for a company that does not use high mileage as a factor in determining auto insurance premium costs.
By shopping for car insurance, you can find a company that will ensure you at a reasonable cost no matter how much you drive. Those who drive many miles every year can still qualify for a number of other discounts that can offset the cost of car insurance.