Pros And Cons Of Low Mileage Driver Insurance
Many insurance companies have started to offer what is called a “low-mileage driving discount.” The concept is simple. If you drive under a certain mileage criteria for the year, then you pay less on your annual premium. (This assumes you’re also accident- and violation-free.)
While a discount of any kind sounds great, you’ll want to carefully consider whether this is the policy for you. To help, we’ve made a pros/cons list. Weigh each before you make a final determination.
Pro: The Money
We could all use a break when it comes to finances and a low-mileage driver discount gives you just that. The Consumer Federation of America estimates that your savings could translate from five to 15 percent per year. You’ll also spend less on gasoline since you’re driving less.
Con: It’s Restrictive
We typically associate cars with freedom and the open road. The American Dream of putting the top down and driving on a long stretch of highway, wind in our hair, is hard to shake. If you love to drive or your work springs frequent business trips on you, then you may find the policy to restrictive in what it allows.
Pro: Less Driving, Less Risk
The less time you spend behind the wheel, the less likely you are to get a traffic ticket or be involved in an accident, and those are the two main things that will send your rates skyrocketing. If you don’t have confidence in other drivers or you’re uncomfortable behind the wheel, this type of policy can be a godsend.
Con: Road Rust
If you spend less time behind the wheel of a car, then you’re liable to feel less comfortable when your driving skills and reaction time is tested. This could actually increase the odds of an accident, though that’s unlikely to be an issue if you drive to the same destinations and seldom find yourself in a high-traffic or highly unfamiliar area.
Pro: Reshaping The Way You Think About Transportation
By sticking to a strict set of driving guidelines, the low-mileage driver policy forces you to think outside the box and restructure how you approach your time behind the wheel. This can lead to more efficient driving practices as well as the aforementioned savings on fuel. Driving less can also have a more positive impact on the environment with fewer emissions. And if you do need to get around more, keeping the low-mileage policy may cause you to rethink modes of transportation. In other words, you’ll be more likely to use a bicycle or electric scooter for knocking around town and your automobile only for longer distances.
Low-mileage driver policies may not be for everyone, but if your home and work are close to each other, then it’s worth considering. If nothing else, track your mileage for a few months to see how often you’re using the car. Think about recurring trips that you may take on annually. Try to come up with a well-thought-out estimate of what your actual driving distance is, and if this type of policy still makes sense, contact your agent about switching over today.