There are so many different factors that can affect the amount you pay for your car insurance, but did you realize that your mileage is one of these? The number of miles you drive annually can affect your car insurance rates, and here are a few important things you may want to know about this.
Why your mileage matters to insurance companies
You may be wondering why insurance companies care about mileage, and there is a good reason for this. The number of miles a person drives per year can either increase or decrease that person's risk for getting in an accident. People that drive very few miles are less likely to get in an accident than people who drive a lot. Insurance companies factor in all kinds of risk levels when calculating quotes, and the number of miles you drive is one of the ways an insurance company determines your risk level.
The mileage levels that may help you get a discount
No matter what insurance company you choose for your coverage, they will factor in your mileage when they offer you a quote, and every insurance company has different standards and rules when it comes to mileage. For example, Florida charges significantly less for insurance if a person drives 5,000 miles versus 10,000 miles.
Every company sets its own standards, but you can guarantee that the insurance company you call for a quote will ask you how many miles you drive. When this occurs, you could ask the company where this mileage level ranks on the levels of risk they use. You may find that driving just a 1,000 miles fewer per year could knock you into a lower-risk category, and this could help you save money.
Ways to reduce your mileage
If you find out that driving fewer miles would offer a discount on your policy, you may want to consider finding ways to reduce your mileage. For example, is there a way you could carpool to work? Is there public transportation you could use instead of driving? These are some options you could consider if you want to put fewer miles on your car.
The mileage level you drive annually can affect the rate you pay for auto insurance. If you would like to learn more about this or other factors that might be affecting your rates, contact an auto insurance company to discuss your situation. Visiting http://www.village-insurance.com is a great place to start.