Consider a Low Mileage Auto Insurance Policy & Save

There are many families who don’t drive their automobiles as much as the national average. This could be for many reasons like having great public transportation and congested roads, working from home or driving a company car to and from work. They still like the convenience of having an automobile available to them whenever they want. They may go to their weekly shopping and family and other social visits with it. Being retired or semi retired is another reason why people don’t drive much as well.

It would be unfair for those people to pay the same amount of premium as the people who drive thousands of miles more every year. Understandably the risks of having an accident or getting other damages to your vehicle will be much less when it is sitting on your driveway most of the time. As we know that risks are the main factors in premium calculations you can expect to pay less when you drive less. Not many people or auto insurers can argue with this logic and many of them offer attractive savings.

pleasure only auto insuranceYour first step should be to figure out exactly how much you are likely to drive next year. Looking at how many miles you have driven last year would give you a good idea and companies and agents can help you as well. Once you know the figure you should call your broker, agent or insurer to let them know the changes in your life and yearly mileage. This should normally do the trick and you should be on your way to lower premiums.

Another option is to look at how you drive your automobile. Generally, companies categorize them as commute and social driving, and pleasure only. If you are using your auto for daily commute to work you will need to buy the first type of coverage. Depending on how far your work is from home you would be travelling a few thousand miles a year thanks to regular commute. It is actually more than that. When you are commuting you will be using your auto frequently or at least twice a day. These frequent usage means that you may need to pay higher premiums.

If you don’t commute to work because it is walking distance to home, you are retired, working from home or using public transport you should let the agent know about it. You may be able to buy a pleasure only policy that can be cheaper. These policies cover you for mainly social calls, travels to holiday destinations, grocery shopping and taking children to classes and so on.

While considering low mileage pleasure only policies you should be selective as well. Some of these policies may be very strict and say no commute at all. But a few companies put workable limits to commute like you cannot use your auto for commute more than six times a month or so. This is just an example and you need to check the conditions with your insurer. There may be times that you may need to take your car to work. It could be because public transport is on strike or you need to carry a birthday cake for one of your colleague or something. Make sure it is not taken away from you completely with pleasure only policies.

 

March 20th, 2013 Uncategorized Comments Off on Consider a Low Mileage Auto Insurance Policy & Save