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Driving less for cheap auto insurance
There are many things that can affect your auto insurance rates without you knowing it. And it usually takes a minute to think about the possible relation in order to understand why insurers use these factors in the first place. That's the common story for yearly mileage, which is often overlooked as an important factor by too many drivers. Most people don't even understand why the number of miles driven per year should have any significance for auto insurance. However, the insurers always have an answer and if you pay a little attention you may actually get cheaper auto insurance thanks to the advice they're giving you for free.
Actually, it's all very simple to the point where not realizing the fact seems embarrassing. The more time you spend in the car the higher is the risk of having an accident, simple as that. Sure, you can argue that better drivers spend years without any accidents while occasional drivers may have bumps and crashes every month. But these are statistical extremes we're talking about that don't change the general picture a bit. And the picture is very clear: the likelihood of having an accident is directly proportional to the time spent driving. Whether you like it or not, it's a statistical fact that is confirmed by tons of observations and simple common sense. That's why insurance companies ask you to indicate your yearly mileage when offering quotes, since this amount will have an impact on the rates you'll be charged with. If the amount falls into the statistical average there won't be any significant effect on the quote as there are other more important factors in force. However, if the amount is significantly higher or lower than the average you will have your quote altered depending on the extreme the amount leans to. And you certainly want it to be lower, since it's a very effective way of reducing auto insurance rates.
In fact, the majority of insurers set a threshold of 10,000 per year, which allows customers to opt for low mileage discounts. If you manage to stay below this amount then you will certainly get a substantial discount that may reach 20% with some providers. So there's a good reason to use your car less often. Some companies also include a higher threshold (usually about 15,000) for a less substantial discount, which may still make your auto insurance more affordable. Sure, it may sound as a piece of cake, but is the number 10,000 all that big?
By doing simple math we get a number of 27.4 miles per day. Now think about the time (and especially the distance) you spend getting to work and back home. The weekends also take a toll of doing some grocery shopping and other chores that require you to take the car. So, does the number 10,000 look that big now? Certainly not, if you're living in the suburbs and have spent a considerable amount of time in traffic on a regular basis. Not to mention the possible long trips that aren't a part of your regular routine. As you see, reducing your yearly mileage isn't such an easy task after all, but there's still a solution to the problem.
If you really want to get that discount think about carpooling with your neighbors. If someone's working in the same place or nearby it makes more sense to use a car that fits several people instead of each using their own vehicle. If your workplace is located within a walking distance from your house that's even better, since you will be able to enjoy regular physical activity instead of rolling up your mileage. Make sure to think of other ways that can reduce your yearly mileage and you will certainly come up with a solution that will deliver you the desired discount and make your auto insurance cheaper.