How to Get a Low Mileage Car Insurance Discount

October 30, 2013

Purchasing a car insurance policy with a low mileage car insurance discount can help to save you a considerable amount of money on your monthly car insurance payments. While not all car insurance companies offer these types of discounts, many insurers do. The reason is simple--drivers that drive less have far fewer accidents than drivers that spend a lot more time on the road. Here are some ideas on how to find and apply for low mileage insurance discounts from car insurance companies.

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Ask Your Local Car Insurance Agent

Your first step in getting low mileage discounts for your car insurance should be contacting your local car insurance agent. Inform the agent of any changes in your life that enable you to drive less than you used to. For example, if you have moved or changed jobs, you may be commuting far fewer miles every day than you were before. Also, if you are if you have a second vehicle that you only use to commute to work or only use occasionally, consider insuring that vehicle as a non-primary vehicle and save a lot of money due to driving fewer miles in that vehicle.

Car insurance companies that offer low mileage discounts will usually take into account where you live and where your place of employment is located. So, if your place of employment is relatively close to your home, the insurance company may offer the discounts without additional questions. However, if you live a considerable distance away from your place of employment, the insurance company may question your claim to the mileage discounts. However, if you explain to the insurance company that you frequently take public transportation or are involved with a local car pool, the insurance company may offer you discounts as well.

Search for Companies with Low Mileage Discounts

If your present car insurance company doesn't offer low mileage discounts, you should find a company that does. Use the Internet to search for companies that offer low mileage car insurance discounts. Use your favorite search engine and simply enter terms like "low millage car insurance" or "low mileage insurance discounts." While finding a company that offers these types of insurance discounts can save you a lot of money, make sure you wait until it is time to renew your policy before switching companies. Many companies impose hefty cancellation penalties if you cancel your policy early.

Consider Pay as You Drive Car Insurance

Although it has been available in Australia and Europe for a number of years, pay as you drive car insurance has only been available in the United States for about five years. Now, there are insurance companies that reward drivers that don't drive very often by charging them relatively low car insurance rates. These pay-as-you-go car insurance companies charge insurance rates based on number of miles you drive. Companies in the United States that offer this type of coverage are GMAC auto insurance, Progressive and a few others. You can use the Internet to search for pays you drive insurance companies that offer coverage in your state.