What's the cheapest mileage for car insurance?
Asked by: Emmett Frami Jr. | Last update: July 19, 2023Score: 4.2/5 (32 votes)
Typically, people who drive less than 7,500 miles per year qualify for low-mileage discounts on their car insurance. Drivers on the road for less than 7,500 miles per year can save an average of $86 per year on car insurance compared to drivers who travel 15,000 miles or more.
Is insurance cheaper with lower mileage?
Is Car Insurance Cheaper If You Drive Less? There are several variables that play into your auto insurance premiums, including mileage. In general, drivers who spend more time on the road have higher premiums. If you're driving less, you may be eligible for lower rates.
What is the best annual mileage for insurance?
Driving 12,000 or fewer miles a year may earn you low-mileage insurance discounts. 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.
Are cars with more miles cheaper to insure?
Cars with higher mileage are typically cheaper to insure. We found that premiums drop about 2.5% on average for every year your car ages. If you're looking to save money on car ownership and the cost of insurance, forgo the shiny new car and consider a used car.
What is considered low mileage on a car per year?
Low mileage designations are largely determined by state laws as well as the specific policies outlined by your car insurance provider. In general, anything less than 12,000 miles per year is considered below average. However, some insurance companies may consider 10,000 miles or less as low annual mileage.
the Cheapest car insurance for low mileage drivers
How do car insurance companies know your mileage?
Generally speaking, insurers will ask you for an estimate of your total mileage, but they might also take an annual odometer reading for verification purposes as well. If they choose to use databases or repair shops' information, they could have an accurate odometer reading at any point in time.
How many miles is low mileage?
As a general guide, the average mileage of a used car is usually considered to be around 9000 to 12,000 miles. Anything that's driven less than this will be seen as 'low mileage'.
What is a low mileage discount?
A low-mileage discount reduces car insurance rates by up to 30% for drivers who drive less than 40 miles per day. Keep in mind that a car monitoring device may be required to qualify for a low-mileage discount.
Can you lie about annual mileage on insurance?
If you underestimate your mileage and need to make a claim, it could invalidate your policy and your insurance provider could refuse to pay out. If you're deemed to have knowingly misled your insurance provider in order to get cheaper car insurance, you may find it difficult to get cover in the future.
Does mileage matter on insurance?
Annual mileage can affect your car insurance price
Car policies tend to be more expensive if your mileage is high because you're more likely to get into an accident. Drivers with a lower annual mileage generally get cheaper car insurance because they're less likely to make a claim.
Is 10 000 miles a year a lot for a car?
Driving the car for around 12,000-15,000 miles is considered average car use. A car that covers more than 100,000 is said to have 'high mileage.
Is 20 000 miles a year a lot?
20,000 miles a year can be considered a lot given the average miles driven by both, American men and women. Additionally, 20,000 miles a year on a car can easily be considered high but it all depends on maintenance. If a car is well maintained, 20,000 miles a year may not matter too much.
What is considered high mileage?
Up to 1000 miles a month – or 12,000 miles per year – is seen as average car use, any more than that would be considered high mileage – a two-year-old car with 40,000 miles, say. That said, the term 'high mileage' is usually reserved for cars that have covered 100,000 miles or more.
What if I drive less than 25 miles a day?
Car insurance has a basis on the concept of risk. The more mileage you cover, the more likely you can get into an accident. Most insurance companies use your average yearly mileage to calculate their car insurance rates. So it is very likely that you will pay lesser premiums if you drive for less than 25 miles daily.
Is there low mileage insurance?
Low mileage car insurance policies are for drivers who don't drive as much each year. While each policy and insurance provider can be different, a low mileage car insurance policy is usually available to drivers who clock fewer miles than the average driver.
What's the average annual mileage?
What Are Average Miles Driven Per Year? The United States Department of Transportation Federal Highway Administration said that the average person drove 14,263 miles per year in 2019. That's roughly 1,200 miles per month per driver or about 39 miles per day.
What happens if you go over your mileage?
If you go over miles, it could cost you a pretty penny. Many leasing companies charge around $0.15 to $0.30 per extra mile. That doesn't sound like very much, but it can add up quickly. Going over 1,000 miles could potentially cost you around $150 to $300 when you return the vehicle to the dealership.
What counts as low mileage?
You might be wondering what constitutes low mileage. There's no firm answer but generally speaking an average annual mileage might be 8-10,000 miles a year so a number below that could be seen as low.
What is too low mileage for a used car?
To determine whether a car has reasonable mileage, you can simply multiply 12,000 by its age. That means good mileage for a car that's 5 years old is 60,000. Significantly more or fewer miles could indicate a problem or trouble in the future.
Is 50 000 miles a lot for a used car?
When shopping for second-hand cars, don't think so much about how much mileage it has on it right now, but how much mileage you'll get out of it. If the car you're looking at has 50,000 miles on it, that basically means you can drive it for another 90,000 miles before you even get to the average.
Is mileage more important than age?
Reliability fades with age
Even when mileage is low, the older a car gets, the less reliable it becomes. Modern cars are much more reliable, even as they age. Five-year-old cars record what is considered a major problem every three years, while 10-year-old cars are more likely to face a problem every 18 to 20 months.
Can I change the mileage on my insurance?
Most insurers will not allow you to change your annual or daily mileage online, so you'll have to call your company to do so.
How many miles should a 2021 car have?
Estimating an acceptable delivery mileage isn't an exact science, as the amount can vary by manufacturer and dealer. The general rule, though, is that anything under 200 miles is acceptable for a new car.
Is 75000 miles a lot for a used car?
If you would like to drive your next used car for five years, for example, you'll want to find a car that has at least another 75,000 miles of expected life ahead of it. With that in mind, a good mileage range for a used car would be between 75,000 and 100,000 miles, since many cars last beyond the 150,000-mile point.