Car Insurance Drive Less Than 50 Miles a Week
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If you're driving less than 50 miles a day, insurance is available at a discount. Companies offer low-mileage insurance if you install plug-in devices or download apps to monitor your driving.
What Is Car Insurance for Low-Mileage Drivers?
One of the factors insurers use to base their car insurance premiums is the number of miles you drive. If you don't drive very far or often, you might want to consider low-mileage or pay-per-mile car insurance. This type of full-coverage insurance is based on how much you drive, so the less you drive, the less you pay.
The reason behind this is that insurers believe the less you drive, the lower likelihood you have of filing a claim. Most insurers base their standards on driving less than the national average of 12,000 miles, while others cap the number at 7500 miles.
However, low-mileage insurance remains complicated, so the best insurance for low-mileage drivers varies. Many companies ask how many miles you drive annually. Always be honest when trying to get the discount, since some insurers will request mileage checks throughout the year. Using a usage-based insurance plan is another way for insurers to keep tabs on your mileage since they can monitor your performance and mileage.
Companies also want to know how many miles you drive to and from work since this can also determine your risk factor. For instance, if you commute to a larger metro area, your insurance rates might be higher since it's a busy, traffic-packed area and makes you at a higher risk for an accident. According to Insure.com, if you commute more than 20 miles one way, your rates will probably be higher.
If you find that you're driving less because you recently retired or are working from home, make sure you alert your insurer about your new estimated annual mileage.
What Is Usage-Based Car Insurance?
Usage-based insurance programs are powered by telematic devices, which you either plug into your vehicle or use an app on your phone. Either option monitors your driving behavior to determine your premium. Many start with a base rate, which is adjusted based on your driving habits. This allows the insurer to better predict what type of driver you are.
These types of programs can provide generous discounts if you show good driving habits. They also monitor the driving of teens in your household and can alert you if they have any bad driving habits, allowing you to correct them and help them avoid getting into accidents.
With telematics, you only pay for the insurance you need as it's a pay-as-you-go plan. It weighs your driving activity along with other key factors such as age, credit score, and location. Some companies that offer these types of programs include the following:
- American Family. It uses an app known as the KnowYourDrive system, which tracks your driving behavior. You can save up to 20 percent on your premium with this app.
- Allstate. It offers Drivewise and Milewise. The Drivewise program is another telematics system that monitors driving habits such as miles driven and the time of day you drive. Using this information can help you save between 10 and 30 percent. Milewise is a pay-per-mile program that uses a plug-in device and app to monitor your driving.
- Esurance. By installing the DriveSense app, new customers can qualify for up to $100 off their premium and an extra 8 percent savings off the rest of their policy.
- Farmer's. Its Signal is an app that gives you a 5 percent discount. You could also receive up to 15 percent off each time you renew your policy and an extra 10 percent if you have a young driver.
- GEICO. The DriveEasy program works similarly to Esurance's, with the amount of savings depending upon your driving habits. You could save up to 20 percent each month off your premium.
- Liberty Mutual. Its RightTrack program tracks your driving patterns and uses that data to take about 30 percent off your policy.
- Nationwide. Its Smartride program either comes as a plug-in device or app and can give you a discount of up to 40 percent. Also, its Smartmiles program is for those who rarely drive as you would pay per mile in addition to a base rate.
- Progressive. The Snapshot program, also available as an app or plug-in device, gives you a discount of $145.
- Root Insurance. Through its app, the company monitors your driving behavior and miles driven. However, unlike other companies, this one requires that you pass a test drive before it will insure you. This app could save you as much as 52 percent.
- State Farm. Its Drive Safe & Save combines a telematics device and smartphone app, giving you a discount of up to 30 percent.
Two other companies worth considering are ones that are new to the insurance industry. Metromile uses a base monthly rate, and then your premium is generated on a per-mile basis via a plug-in device. Mile Auto offers liability and full-coverage options for low-mileage drivers. However, it doesn't require a tracking component but asks that you snap a photo of your odometer monthly to determine your rates.
How Much Will You Pay for Low-Mileage Insurance?
Depending on how many miles you drive, your car insurance premiums could vary. According to The Zebra, based on your annual mileage, you can expect to pay the following average annual amounts:
- 0 to 7500 miles: $1409
- 7500 to 10,000 miles: $1470
- 10,000 to 15,000 miles: $1485
- More than 15,000 miles: $1495
Certain companies such as Liberty Mutual, Nationwide, and Progressive offer discounted rates through their usage-based discount programs. According to The Zebra, the following insurance companies offer some of the best annual car insurance rates for low-mileage drivers:
- USAA: $1146
- State Farm: $1346
- Progressive: $1641
- GEICO: $1694
- Nationwide: $1727
- Farmers: $1862
- Allstate: $2308
- Liberty Mutual: $2513
It's important to note that insurance regulations vary by state. For example, a low-mileage driver in California can save more money than one in New Jersey because California law mandates that insurers use estimated mileage when determining premiums. According to Insure.com, drivers in California typically get about an 11 percent low-mileage discount.
Low-mileage insurance is a smart choice if you don't drive often or many miles. They offer discounts through apps and plug-in devices, which monitor your driving habits. Do some research to determine which company works best for your needs as some companies don't offer discounts in every state.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
https://www.insure.com/car-insurance/mileage-and-car-insurance-rates/
https://www.thezebra.com/auto-insurance/driver/other-factors/car-insurance-low-mileage-drivers/
https://www.caranddriver.com/car-insurance/a35437661/allstate-car-insurance/
https://www.caranddriver.com/car-insurance/a31268711/is-root-car-insurance-legit/
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Car Insurance Drive Less Than 50 Miles a Week
Source: https://www.caranddriver.com/car-insurance/a36136020/driving-less-than-50-miles-a-day-insurance/