Preferred Financial Group

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Comparisons

"How Do Premiums Vary Based On Annual Miles Driven?"

 

There is not an industry standard for how annual miles driven impact your premium. Basically, the fewer miles you drive, the less chance or opportunity for you to have an accident subjecting you to a claim.  Hence, you can expect a lower premium with fewer miles driven. Some insurance companies offer discounts for less than 15,000; some others offer discounts for as low 7,500 relying on your annual estimate of mileage as verification. Others will only offer discounts if the mileage can be verified. Here are some examples of what you can expect in terms of relationships between miles driven and premium:

Conclusion:

As you can see, the premium for each area of coverage is less than for the corresponding coverage with higher mileage. However, note that the differential in the relationship between the premium and mileage is not linear…Said differently, the premium for Bodily Injury Liability coverage for 6,000 miles is not twice as much as the premium for 12,000 miles…$199.08 vs. $247.64. Furthermore, there is no premium differential between 24,000 and 30,000 miles. Irrespective of differentials between premiums and mileage, you should make sure you are paying for coverage that matches your needs…You will likely be saving money.