Is There a Low-Mileage Discount for Infrequent Drivers?

Last Updated on September 24, 2020

If you don’t drive often, then paying for car insurance can feel like a big hassle. Since global climate change is such a hot topic right now, many people are moving away from their cars and using other transit options to preserve the planet. And in New York, public transit is just part of the culture – many people only use their cars to drive to rural areas. With so many people driving their cars less, insurance companies are offering discounts for those who don’t drive often. Here’s what you need to know about these money-saving offers.

Low Mileage Discounts

Most car insurance companies offer at least some form of a discount for those who don’t drive often. Typically, a low mileage driver is considered to be someone who drives less than 7,500 miles per year. When you open a car insurance policy, they will typically quote you the rate for someone who drives 12,000 miles per year, which is the national average. However, you should mention to your car insurance agent that you are an infrequent driver, and they can adjust your premiums. You will probably end up saving at least $100 per year.

Mileage-Based Insurance Plans

Another option for low mileage drivers is a mileage-based insurance plan. These plans are becoming increasingly popular, particularly among those living in big cities who don’t drive often. With a mileage-based insurance plan, you will get a device to put in your car that tracks the number of miles you drive. Then, that number of miles is factored into your overall car insurance premium to save you money. The less you drive, the less you’ll end up paying. Many major insurers offer these types of policies. Allstate Drivewise, Progressive Snapshot, and Esurance DriveSense are all popular options. Many insurance companies are now offering this option after seeing how popular it has become among young drivers.

Tips for Reducing Car Usage

If you want to save money on your car insurance, reducing your automobile usage is one of the best ways to do so. If you usually use your car every day, breaking this habit can be challenging. Here are some tips to help you reduce your reliance on your vehicle.

• Research public transit routes in your area. New York state has some of the most extensive public transit options in the United States, particularly if you live close to New York City. However, many other cities in New York state offer reliable public transit. Buffalo has a light rail system, and most other cities and towns have bus systems. You might be surprised by how convenient taking the bus can be – it’s affordable and you’ll have time to read or use your phone instead of focusing on heavy rush hour traffic.
• Walk to work instead of going to the gym. If you live within a half-hour walk of your workplace, consider using that as your daily workout. It’s a great way to see the city and you won’t need to stress about going to the gym as often.
• Invest in a bike. Bikes are a very convenient way to get around, particularly during the warmer months. They are also a fun workout. Your city may also have a bike rental program available, where you can pick up a bike at a nearby station for the day for a small fee. Another option that’s becoming increasingly popular is e-scooters. While they aren’t available in all cities in New York, many places have them. You can rent them through an app on your phone, and they are a fun way to get around with minimal effort.
• Take advantage of ride-share services. Rideshare programs like Lyft and Uber are typically much cheaper than a cab, mainly if you use their pool options to split the ride with others in your area. These services are great for going out at night or traveling anywhere where you may not want to deal with parking. If you need to drive to work, you should also see if you can carpool to work with other employees that live in your area. You can all take turns driving to save money on gas and use your cars less often.
• If you and your partner each have your own cars, you may want to consider selling one, particularly if one or both of you have other transit options available to get to work and run errands. This is a great way to save money and make a more significant commitment to a no-car lifestyle.

Not only is reducing your driving good for the planet, but it’s great for your wallet as well. If you don’t drive often, it’s worth looking into low mileage discounts for your car insurance.