A low mileage insurance policy for car comes standard with special premium discount. You can benefit by buying this type of an auto insurance cover if you are going to drive less than 7000 miles annually. Nevertheless, your ability to qualify for the lowest insurance rates could depend on the state in which you live as well as the insurance company with which you are working. But it could be possible to save money on premium during your effort to secure a solution that is easy to manage and sustain.
For providing low mileage auto insurance coverage, companies usually install a black box type device in the car that is to be insured. Such type of car coverage is also known as Telematics or usage based auto insurance policy and it gives insurers the privilege to monitor the exact number of miles that a driver is going to drive annually. Alias Insurance can assist you to get and compare the best free low mileage car insurance quotes online. Use our specialist online services for finding a solution that fits your budget.get a Free quote
The following groups of individuals can benefit with the best auto insurance for low mileage drivers at lowest premium online.
In any case, it has been revealed from a recent study that drivers who drive less than 5,000 miles annually pay around 8% less than drivers that drive 15,000 miles every year. On an average, drivers in America drive about 13,500 miles each year. it means a low mileage policy can save hundreds on premium.
To enhance your chances of securing a discounted auto insurance cover regardless of the number of miles that you will drive, you may take the below mentioned aspects into consideration.
If your present car insurance provider doesn’t provide premium discount for driving fewer miles annually, think of switching over to a new insurer that uses mileage as one of the rating factors for calculating premium.
Most of the companies offer premium discount to defensive drivers and it could be one of the best ways to save money on premium.
You can consider raising deductible while keeping comprehensive as well as collision coverage features for lowering premium. However, if your car is more than 5 years old, you might not need full coverage as it is expensive. So, you can drop comprehensive and collision coverage features altogether.
By buying a usage based or Telematics policy, you can qualify for a low mileage discount. Fewer miles mean lower probability of meeting with an accident and so, insurer will extend discount.
Companies which offer auto insurance low mileage discount policies will approve your application if you indicate to them that you will be driving fewer than 8000 miles during the entire year. Although the amount of discount will vary from company to company, you can expect to get around 10% to 20% concession on annual premium amount. Furthermore, discount rates could also depend on the type, make and model as well as current market value of the vehicle that you are driving. If miles driven exceed 12,000 additional surcharge will apply.
Thus, there is a direct correlation between number of miles and premium. The more miles you will drive, higher will be the probability of meeting with an accident. The risk is compensated by charging surcharge to insurance rates. However, the surcharge fees are lower than the low mileage discount amount. Insurers will add surcharge fees in the range 5-10 percent if you drive more than what had indicated. You can compare coverage limits and premium rates provided by different companies in your neighbourhood to identify the best quote for you.