What Is Low-Mileage Discount And How You Can Get It?

Low mileage discount is the reduced premium for annual mileage, which comes under a certain cap. They vary with every provider. Typically, the mileage cap is between 7500-15000 miles per year. You must ask your auto insurance company for low mileage discount, if your annual mileage does not exceed this range.

How to get low mileage discount

First, you need to estimate your mileage as some insurers go through verification. According to a comparative data gathered, savings from these discounts will be in an average about 2 %

nationwide, if annual mileage is below 7000. It can be at maximum 20 % in some states where laws consider low mileage to be a rating factor.

You can also let the insurance company measure your annual mileage. Pay-as-you-drive (PAYD) program is also offered by several insurance companies that provides you a small discount at renewal time. Here many drivers save up to 30-50 %, if they are not regular drivers. You can also check some more insurance programs like what is collision insurance.

You can get a low mileage discount by a pure pay-by-the-mile, which is offered by some companies in very few states where your next month’s bill is affected by the factor of how much a person drives.

Pay-as-you-drive policies

The pay-as-you-drive models are very beneficial for low mileage drivers. Several insurance companies provide a good amount of introductory discount that vary from 5-10 %. This offer applies only until the incoming data is used to compute the discount of your future renewal. The amount may change at every renewal period once the data is used to compute your discount.

There are also many other advantages of PAYD devices rather than just to record mileage. They can also measure speed, acceleration, braking and location through current plans that do not compute discounts based on GPS data.

When to ask about low mileage discounts?

You can consider a low mileage discount even if you are unsure about annual mileage. You can ask for mileage discounts in following situations.

• If you are retired and a senior driver
• If you join a car pool that reduces your number of days of driving
• If you purchase a second car for running errands
• When you are not driving to work and it lessens your annual mileage.

Usage based programs and discount

“Pay-as-you-drive” or “pay-as-you-go” is some of the insurance programs that are offered by many car insurance companies. By reviewing your driving habits by car insurance company, you can also get a personalized premium. The discount may also go up to 50 % based on your driving skills. The costumer can also get a customized discount. The better a person drives the more he can save.

You can also get a discount just for signing up the program and also to install the device in some cases. A small telematics device is attached to your vehicle when you sign up the usage-based insurance program. It monitors.

• Person’s average driving speed
• How hard a person brakes
• How many miles a person drives
• The time of day or night you drive.