Is car insurance cheaper if you dont commute?
Asked by: Nakia Johnston | Last update: December 13, 2025Score: 4.9/5 (7 votes)
Is it cheaper to insure a car for pleasure or commute?
A commuter policy is slightly more expensive than a pleasure use policy on average. But what you pay for car insurance coverage will depend on you, your insurance provider, and your vehicle. See below how your premiums can change based on your car insurance company and your vehicle use.
Does commute distance affect insurance?
So, even if you're a high-mileage driver, it won't affect what you pay for insurance. What does make a difference is where you drive. The risk of an accident varies from one area to the next — driving ten miles to work in a rural area doesn't carry the same risk as driving ten miles in an urban setting, for example.
Can you get cheaper insurance if you don't drive much?
But here's the good news: If you're a low-mileage driver, you're probably eligible for lower insurance rates. Insurance companies often see less driving as less risk, which can mean savings for you.
Is car insurance cheaper depending on where you live?
Where you live and where you park your car overnight may affect your car insurance premium. Urban neighborhoods typically have higher rates of accidents, theft and vandalism than more rural areas, which means premiums may be higher.
Does my commute to work matter to my car insurance?
Does your zip code affect your car insurance?
Which States Don't Use ZIP Code? Currently, the only two states that have banned the usage of ZIP codes for auto insurance ratings are California and Michigan. In all other states, it's legal for insurers to use ZIP codes as a rating factor for auto insurance to assess risk.
Who typically has the cheapest car insurance?
Geico, Nationwide and Travelers are among the least expensive for car insurance. Americans are paying a lot for car insurance these days: Average annual rates for a full coverage policy are up to $2,638 per year, while minimum coverage averages $767 per year.
What mileage is the cheapest for insurance?
In general, you'll see the most savings if you drive less than 5,000 miles annually. According to Insure.com, someone who drives 10,000 miles annually will pay 4% less than someone who drives 12,000 miles. Driving 7,500 miles annually could reduce your premiums 10% compared with driving 10,000 miles.
How can a driver reduce their insurance costs?
Some of the most impactful ways to lower your car insurance include qualifying for multiple discounts, avoiding accidents, and changing your coverage. Comparing rates, trying usage-based insurance, and knowing how your vehicle might affect your rate can also help.
Does miles driven affect insurance?
If you drive a lot, insurance companies will charge you higher premiums because they're taking on more risk. Generally, anything over the U.S. average annual mileage (roughly 14,000 miles) is considered high and will result in a rate hike.
What is considered too long of a commute?
Normally commutes that last for more than 45 minutes are considered long. You need to consider some variables when you have to figure out how long a commute is too long and how far it is from home to work.
Should I say my car is for pleasure or commute?
The general rule is that if you use your car every day to get to work, you are commuting, but if you only use it occasionally, you are only using your vehicle for pleasure. Insurance companies usually classify your driving "for pleasure" if you drive less than 7500 miles a year.
What is the lowest mileage for car insurance?
How many miles a year is considered low mileage? According to KBB, insurers typically offer insurance discounts for low-mileage drivers who log less than 7,000 miles annually. The average American drives 13,476 miles per year, according to the Federal Highway Administration's 2022 report.
What vehicle use is the cheapest to insure?
Sedans are usually cheaper to insure than trucks and high-end SUVs. However, companies charge varying premiums depending on the vehicle model, safety features, and cost of parts. So, if you're shopping for a sedan, it's beneficial to understand how much you'll pay to insure it and where to find the cheapest rates.
Does high mileage make insurance cheaper?
How many miles you drive annually is one of the rating factors insurers use to determine your insurance premium. Drivers who clock more miles than the average — about 12,000 miles per year — pay more for car insurance because of the heightened risk of being on the road more often than a low-mileage driver.
What is the average miles driven per year?
The average annual miles driven in the United States is about 14,489 per driver, according to the latest U.S. Department of Transportation Federal Highway Administration data for 2022. That annual mileage average is a 7% increase from 2021, when the average driver traveled about 13,500 miles.
How to get a lower car insurance rate?
- Increase your deductible.
- Check for discounts you qualify for.
- Compare auto insurance quotes.
- Maintain a good driving record.
- Participate in a safe driving program.
- Take a defensive driving course.
- Explore payment options.
- Improve your credit score.
Does credit score affect car insurance?
How credit-based insurance scores work. Most U.S. insurance companies use credit-based insurance scores along with your driving history, claims history and many other factors to establish eligibility for payment plans and to help determine insurance rates. Again, except in California, Hawaii, and Massachusetts.
What happens if I don't add my teenager to my car insurance?
Failing to add your teenager to your auto insurance can lead to coverage denial, legal penalties and policy cancellation. Lack of driving experience and perceived higher risk contribute to higher car premiums for teen drivers.
Will my insurance go up if I drive more miles?
The amount drivers pay for their insurance is determined by the miles they put on their cars. The greater their mileage, the more expensive their insurance policy will be. On the other hand, the lower mileage means a lower monthly payment.
Do you pay less insurance if you drive less?
While several factors influence your car insurance cost, you may pay a lower premium if you drive less. That's because insurers may consider you a lower risk of filing a car insurance claim if you spend less time on the road. Many insurers incentivize low-mileage drivers by offering discounts on their premiums.
At what age is car insurance cheapest?
Experienced drivers are less likely to have accident claims, which means they cost less to insure. At Progressive, the average premium per driver tends to decrease significantly from 19-34 and then stabilize or decrease slightly from 34-75. At age 75, the average premium begins trending upward.
Who is cheaper, Geico or Progressive?
GEICO is cheaper and has better ratings than Progressive. Your experience with GEICO and Progressive will vary based on individual rating factors.
Who is the #1 insurance company in the USA?
State Farm is the largest auto insurance company in the U.S. based on written premium, or the total amount it bills customers. Progressive is the second-largest car insurance company, followed by Geico and Allstate.