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convertibleIf you have a car that you only drive from time to time, you may be paying more than you have to for St George car insurance. Drivers who drive infrequently may be missing an opportunity for an insurance discount that affords lower car insurance payments to drivers who are on the road less. 

The logic behind the discount is simple – people who drive less frequently are less likely to get into a car accident -- and in turn, are less likely to cost a car insurance company money.

How does it work?

There are a few ways that auto insurance companies are offering discounts to infrequent drivers.

One way is by allowing occasional drivers to purchase a plan that limits the amount of miles they can drive, in exchange for a lower premium rate.  Car insurance companies measure the mileage on a driver’s car at the start of a coverage period and again at the end; as long as a driver has not exceeded the total number of miles agreed upon for the discount, he or she will be allowed the lower priced payment.

Car insurance companies are now offering pay-as-you-drive programs. This is an insurance policy that allows the driver to pay a certain amount per mile that they drive. Drivers who purchase pay-as-you-drive insurance plans can either self-report odometer readings at the beginning and end of coverage periods, or allow a car insurance company to install technology to track their driving habits. This insurance policy is good for very low-mileage drivers and it's similar to buying gas for your car – the less you drive, the less it will cost you.

How do you qualify?

While every insurance company has its own specific qualifications, drivers can generally qualify for a low-mileage discount if they drive fewer than 15,000 miles annually—and, the less a person drives, the higher the discount will be.

Several groups of people tend to be good candidates for low-mileage discounts. Car owners who live in cities with good public transportation systems often qualify, as they use their cars sporadically and not for day-to-day travel.  Retired seniors also qualify, because they are not commuting to and from work. Finally, people who participate in carpools are generally good candidates for low-mileage insurance, because sharing their daily driving significantly reduces the number of miles traveled in their own vehicle. Others who might qualify are antique car owners who rarely drive their cars, two-car owners who primarily drive one car, and people who work from home.

How much will you save?

While each car insurance company’s discounts work differently, the amount a driver can save by purchasing low-mileage insurance is significant. Most companies calculate discounts on a scale that should allow drivers to save an average of anywhere from 10% to 20% on car insurance premiums. Drivers who drive less than 2,500 miles a year could see discounts of up to 50% less than their normal insurance rate.

How can I get a low-mileage insurance discount?

Today, many (though not all) major car insurance companies are offering a discount to occasional drivers.  If you think you are a good candidate for a low-mileage discount, research which car insurance companies offer an option that make sense for you. Approach the insurance company knowledgeable of your driving habits and well-informed, and your wallet will be glad you did.

Think you might be a good candidate for low mileage car insurance? Call Key City Insurance at 435-656-8100 to find out more.

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