How Mileage Affects Your Car Insurance Quotes
Driving less can lower your car insurance rates, but sometimes you will be required to significantly lower your mileage, and the discount won't make much difference. Some companies offer 6-14% off their auto insurance rates for drivers that go from 10,000 to 5,000 miles a year.
Specifically in California, the savings for low mileage drivers are much higher, thanks to the state's laws that are encouraging it. According to recent California laws, insurance carriers have to confirm the estimated annual mileage per vehicle.
Other companies actually have a low-mileage driver discount. For example, Travelers Insurance IntelliDrive's program gives low-mileage discounts from under 13,000 miles a year with up to 30% discounts depending on the state.
Other companies, like Root Car Insurance, is an app that have a usage-based pricing model that is using data collected via telematics devices to rate premiums based on mileage and driving habits, rather than demographics.
Allstate Insurance emphasizes mileage as the most important factor in their Drivewise program, with maximum savings when driving under 12,000 miles a year, and some discounts at up to 15,000 miles annually.
|Average Annual Milage||Average 6-month premium|
As per the Federal Highway Administration, the average American drives 13,500 miles annually. Men average 16,550 miles a year, while women drive 10,142 miles a year on average. Male drivers mileage reaches its peak when they are 35 to 54 years old, with 18,858 miles a year on average, while female drivers reaches their peak with 12,004 miles a year at ages 20 to 34.
How much is car insurance per month?
The payment for auto insurance per month depends on many factors. Most important are how clean is your driving record, what is your credit score, your vehicle type, how many years you've been driving, your age and how much car insurance did you actually buy.
Getting minimum liability coverage (for example: 25/50) will surely keep your rates low. To have a $39/month car insurance you will actually have to pass on comprehensive and collision coverage and keep your limits and coverages at a minimum. This is not recommended simply because it doesn't really protect you good enough. It is better and more recommended to get a better and wider coverage that greatly protects you with car insurance rates of around $70-100/month.
Please find average car insurance rates by state on the chart below. Rates are based on the state minimums by law for drivers with a clean driving record and good credit.