How much a person drives their vehicle can significantly impact their auto insurance rates. According to U.S. News & World Report, low-mileage drivers pay an average of $2,388 each year for insurance coverage.
Comparatively, high-mileage drivers pay an average rate of $2,524 annually. The threshold of miles driven that determines whether someone is a high- or low-mileage driver varies by insurer, but that standard is generally around 7,000 miles per year, with the average U.S. driver logging around 13,476 miles.
Some insurance companies reward low-mileage drivers in the form of discounts on their premiums. Others function on a pay-as-you-drive system in which insureds pay a set monthly fee for coverage, plus an additional few cents for each mile they drive. These policies generally offer the same coverage as a traditional auto policy, but drivers must strictly limit their driving to see savings.
Many pay-as-you-go structures employ telematics, or usage-based insurance (UBI), which allows carriers to track drivers' habits. In addition to mileage, UBI devices can be used to track other driver behaviors that may, in turn, affect rates, like speeding, hard braking and phone usage.
In the slideshow above, we'll look at five of the top auto insurance carriers for low-mileage drivers, according to Clearsurance.
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