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Will my vehicle insurance rates be lower if I do not drive every day?

Yes, your insurance premiums will definitely be lower if you do not drive every day. Most insurance companies will extend a discount to those motorists who drive below a certain amount of miles annually. Typically when you are filling out information for an insurance quote with a company, you will be asked for an estimation of how many miles you drive a year and what the mileage you put on your vehicle is for (i.e. commuting to and from work or school). Facts, such as these, will allow an insurance provider to determine exactly how much you drive on a daily basis.

When determining the insurance premiums for a motorist, the insurance provider will weight their characteristics against the national average claim rate for motorists who share similar characteristics. Based upon their reasoning, a motorist who does not use their vehicle on a daily basis will be less likely to receive a citation or to be involved in a collision. This will translate, financially, into lower rates for the resulting premiums.

One option for motorists, offered by specialized automobile insurance companies, is called Pay As You Drive (PAYD) insurance or One Day Car Insurance. The concept works akin to how a consumer would purchase minutes for a prepaid cellular phone. You can purchase automobile insurance for just one day or up to thirty days. The cost for this coverage is based upon an estimation of how many miles you plan to drive on that given day. While many motorists utilize their vehicles too often for this to be a practical option, it can be ideal option for those who have a vehicle they might drive only once in a while, like a restored muscle car.

It is important to discuss with your insurance agent whether or not a low annual mileage will affect your insurance premiums at all. In some states, like Iowa and Tennessee, insurance companies will offer three separate flat rates for motorists: one rate for those who commute, one rate for those who carpool, and one rate for those who drive only for pleasure. This is a situation in which price comparison shopping would benefit you as a consumer. If you find a policy in which you are interested, be sure to inquire specifically on how annual mileage affects the car insurance premiums they will offer you.

If a low annual mileage count will positively affect your rates, there are actions you can take to further reduce the amount of miles you put on your car. If you live in a large city with an adequate public transportation system, utilize it. It could be a wise decision to invest in a bike or a motor scooter. Besides the annual saving you will incur with your insurance premiums, you will also save money by lowering the amount of gas you use. A lower mileage count can also reduce the amount of wear and tear you place on your vehicle each year. 


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