When shopping for auto insurance, there are several ways in which you could save money on your premiums -- and for those who don't drive their vehicle very often, the low mileage discount could be a great way to keep more money in your pocket.
Typically, people who qualify for the low mileage discount may also be able to obtain several other auto insurance premium discounts as well - so it pays to inquire as to any and all that you may be entitled to.
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How Does the Low Mileage Discount Work?
The number of miles a person drives each year can directly affect the amount of risk that he or she poses to an auto insurance company. This is because the less time they spent driving, the lower the odds are that they will obtain a moving traffic violation and / or be involved in an auto accident.
Because of this lower amount of risk, auto insurers do not have to charge as much for car insurance coverage to those who drive below a certain number of miles each year. This is especially the case if you already have a safe driving record.
Most insurers will offer these car insurance discounts to those who drive fewer than 7,500 miles per year or less - although some will offer it to those who drive up to 10,000 miles per year. Before being approved for the discount, some auto insurers may require that you verify your mileage. This may be done by either filling out a form, mailing in a photo of your odometer, or sending in your vehicle's service records.
Those who qualify for the low mileage discount can typically save between 5 and 15 percent each year on their auto insurance premiums. If this discount is combined with any other discounts that you may qualify for such as the good driving discount, you could save a considerable amount of money each year on your auto insurance premiums.