There are three ways to save on car insurance if you don't drive much. You can take advantage of reduced mileage discounts, pay-per-mile insurance, or usage-based insurance. Keep in mind that we're talking about the miles traveled over a period of time, not the total number of miles on your odometer. Most insurance companies offer low mileage discounts to drivers who don't drive often.
If you have a car but barely drive it, you might wonder if there's a cheaper car insurance option beyond traditional coverage. While pay-per-mile auto insurance is different from a traditional auto insurance policy, you still have the same coverage options, such as auto liability insurance and medical payment coverage. To determine your monthly base rate, the company typically uses factors such as gender, age, and the make and model of the car, similar to a traditional car insurance quote. The age of your car may affect the overall insurance rate, but a higher or lower reading on the odometer isn't something insurers generally use to set rates.
Insurance prices vary from company to company, so if you think you're paying a lot for car insurance, you might want to get quotes from a few different companies. In addition to saving money on your car insurance during this time, you should also make sure that your car doesn't cost you extra money while it's in your driveway. Auto insurers may not offer a direct discount for driving fewer miles, but some may offer usage-based insurance programs that could lower the rate as a reward for driving safely and less in general. A low mileage discount offers a percentage discount on the cost of a traditional policy, while pay-per-mile auto insurance determines your rate based on the distance you drive.
However, it's hard to know how little you need to drive to benefit from pay-per-mile car insurance. Many insurance companies will ask you how many miles you drive and will factor them into your car insurance rate. Let's see how discounts for driving less work, as well as other ways you can save money on your car insurance during this time. If you find a way to reduce the amount of time you drive, you might be eligible for some discounts on your car insurance.
When it's time to renew your car insurance, check with your agent to see if you qualify for the discount. While technically you can pay less on your car insurance for driving less, you may not meet the requirements and, even if you are, it probably won't mean immediate savings. Lower annual mileage on your vehicle can directly translate into savings on your car insurance premium.