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.
Continue Reading for Free
Register and gain access to:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
