If you research ways to cut your auto insurance costs, you will likely find a lot of excellent tips you can follow. Following these tips may result in lower premiums, and one tip you could use is driving less. Driving less can help you cut your auto insurance costs, and here are a few things to know about this option.
The Effects of How Much You Drive
Did you know that auto insurance companies base rates on the risk level of drivers? A high-risk person pays more for coverage than a low-risk person. Insurance agents factor in a lot of details when determining a person's risk level, and one of these factors is the amount they drive.
If you drive a lot, you have a higher risk of getting into an accident. The more you drive, the more you are on the roads. Anytime you get on a road and drive somewhere, you take on the risk of getting into a collision. If you drive a lot, this makes your risk level higher.
Now, compare this to a person who drives very little. A person who barely drives is on the roads less often. This person, therefore, has a lower risk of getting in a collision. If you drive very little, you might receive a low-mileage discount, and this is how you can save money on your auto insurance.
The Requirements to Meet This Discount
If you feel that you qualify for a low-mileage discount, you will need to find out the details that insurance companies use to determine an answer to this question. Most companies that offer these discounts base it on the number of miles you drive in a month or year. For some companies, you might qualify if you drive less than 12,000 miles a year, or 1,000 miles a month. Other companies have different standards, though. You can call around to find out what the various rules are with insurance agencies.
There Is Another Option
There is one more option to consider if you drive only a few miles each month. You could evaluate a pay-per-mile auto insurance policy. This type of plan charges you a flat fee per mile driven. If you do not drive at all for an entire month, you might pay nothing for your premiums that month.
Are you interested in learning more about this discount or others? If so, call an insurance company like Affordable Insurance.