Mileage a Factor in Auto Insurance Rates

Starting a carThere are a number of factors that can affect a driver’s auto insurance ratings, mileage and usage included.

In most cases, people will only report life changes to car insurers if they think it will decrease what they are paying for their premium, according to a Quality Planning survey. It found drivers are five times more likely to report mileage decreases than increases to auto insurance companies. Policy holders are also much more apt to inform insurers when their driving usage changes from “commute” to “pleasure use.” The latter usually qualifies for cheaper insurance.

Consumers will always be on the lookout for the most affordable auto insurance. “A 3,000-mile decrease in annual miles driven can result in a reduction in annual premium of more than $50, on average, while a reduction in daily commute of three miles yields almost $20 saved on annual premium,” Quality Planning president Raj Bhat said. “It’s easy to see why consumers are selective about what they disclose.”

Other factors that can reduce auto insurance costs include a good driving record and credit report.ADNFCR-3298-ID-19791061-ADNFCR

About John Pirro
John Pirro is a licensed fire and casualty insurance agent specializing in various aspects of the auto insurance industry. He worked in the auto body repair industry before taking a reporting position at Online Auto Insurance News.

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