When it comes to telling their insurers about how many miles they drive each year, the average U.S. policyholder underestimates the total by more than 6,000 miles, according to Federal Highway Administration data reviewed by Insurify.
The average U.S. driver travels around 13,450 miles each year. However, the annual miles traveled reported to insurance carriers averages out to 7,589, or 44% less than the actual miles traveled.
The amount a policyholder drives is one of the things that carriers take into consideration when writing an auto policy, although it doesn't weigh as heavily into underwriting decisions as factors such as vehicle type, driving history and the motorist's age. Insurify reported that drivers see an extra $3-$5 on their monthly premium for every additional 2,000-3,000 miles traveled annually.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
