Does it matter how many miles you put on insurance?

Car insurance premiums are based on risk. The further and more often you drive, the more likely you are to be involved in and accident and need to make a claim. So, the higher your annual mileage, the higher your premium is likely to cost.

What is low mileage for auto insurance discount?

When car insurance companies offer you a rate, it’s usually based on the standard national average. However, you might be able to get discounts by being a low-mileage driver. In general, low-mileage drivers are people who drive less than 7,500 miles per year.

How do insurance companies verify 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.

What is the average annual mileage for a car?

340 billion
Average miles driven per year in each state

State	Total Miles	Average Miles Per Driver
California	340 billion	12,524
Colorado	54 billion	12,899
Connecticut	31 billion	12,117
Delaware	10 billion	12,609

What happens if you go over your annual mileage?

Going over your annual mileage could invalidate your policy Other times it will mean you can’t claim as much as you thought. In some cases insurers will also charge a lump sum to cover the difference between your current policy price and what you would have been charged if your mileage was correct.

Is car insurance based on miles driven?

Pay-per-mile car insurance policies use an in-car device to track the number of miles you drive per month in order to determine your rate. Your insurer charges a base rate plus a per-mile fee, which is used to calculate your premium.

What happens when you go over your annual mileage?

How many miles do you get when you buy car insurance?

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. The US Department of Transportation estimates that the average driver racks up over 13,000 miles in a year.

What is considered low annual mileage for car insurance?

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. Drivers can potentially receive special discounts if they drive their cars less than what’s considered average.

How many miles do you drive to work to save on insurance?

Your car insurance rates will be higher if you drive more than 20 miles each way to work. Insure.com’s data studies show many drivers get low mileage discount of 5\% or under on average nationally. What are commuting miles and how do they affect my car insurance rates?

Will my annual mileage affect my car insurance?

I reduced my annual mileage from 12k to 10k and they stated that it was just a rough figure and that it would not effect your insurance if you were just over, even by a couple of hundred miles or so. If you select 5000 miles for your annual mileage and do 5005, for instance, would that invalidate your insurance?