Insurance customers are often eager to save money, and insurance companies have continued finding ways to help them lower their premium costs. One way that companies reward drivers who don’t log a lot of time behind the wheel is to give them low-mileage discounts for driving less.
The costs of premiums vary from state to state. Some states require insurers to factor in the estimated annual mileage when they set rates. Why does this matter? In California, increasing estimated miles from 5,000 miles to 20,000 miles per year equates to approximately a 25 percent premium hike. Insurance companies can make incremental increases for drivers who put more miles on their cars, although the differences are typically not as significant as in the Golden State.
Still, saving money on your car insurance can help you out financially, and the idea of saving money by driving less is one … Read more