Stay Close to Home? Save on Insurance with a Low Mileage Discount

twitter-profilepicCar insurance is an expense that most of us just deal with on a monthly basis. I know that I don’t enjoy paying that bill when it comes in the mail, but what can you do? I have to drive, so off the check goes to the insurance company, never to be seen again. Even though I have worked hard and done my homework to get a fair rate from a reliable company, I still don’t like paying the premiums each month. Never have, and probably never will.

A Handy Tip

I did just learn a new trick though that stands to save me some serious cash, and it might be able to help you out as well. If your family is anything like mine, you probably have two (or more) cars parked in your driveway. For us, one of those cars does the ‘heavy lifting’ and gets me back and forth to work, takes us on trips, etc. The miles add up fast on our workhorse.

However, the other vehicle we own is used almost exclusively for chores and errands less than a few miles from home. We live near a shopping center and the school, so rarely are the trips very long in our second car. Sometimes, it doesn’t even leave the house for days at a time! So why am I paying a full premium to the insurance company each month for a vehicle that is rarely out on the road?

Ask and You Will Save

The answer is that I don’t have to. Any good insurance company will offer you a discount for vehicles that fall under their ‘low mileage discount’ category. Getting even just one of your vehicles into this category can mean significant savings on your auto insurance bill month after month.

See, insurance companies work on the law of averages. They take polls of how much the standard driver uses their car in a year, and applies that number to all vehicles across the board. This is where they get the basis for their rates. That works fine for cars that are used on a daily basis, but not every vehicle is a commuter car. By looking into your insurance company’s discounts for cars that drive very little, you could wind up saving a lot.

Additionally, you can get a discount at the end of the year if your car falls under a specific number of miles out on the road. Again, this number will vary among different insurers, so ask your agent or check on their website. Every little bit of savings helps, so don’t pay too much to insure a car that stays home more often than not. Many different kinds of vehicles could wind up falling into the low-mileage category, including –

  • Vehicles used by stay-at-home moms
  • Collector cars that are only driven on weekends
  • Recreational vehicles
  • Teenagers vehicles only driven to school and back

It’s no surprise that these discounts are not advertised in big letters on the homepage of the insurance company. They would rather you keep paying your full rate, just like the government wants you to pay unfair parking tickets, even if you don’t drive very much – but now you know better. Act on this little piece of knowledge and watch your insurance bill go in the right direction for once – down.