Something to note when looking at the survey results: the importance of comparison shopping. Mileage discounts don't always result in the best price. Please contact your Travelers agent or Travelers representative. As long as your vehicle is compatible with the device and you live in a participating state, you can enroll in. online insurance quotes or call toll free:.
If you move the device to a different car without notifying customer support, the program will not transmit mileage data or allow you to view driving reports on your online dashboard . The MetroMile Metronome device then tracks your mileage, which is used to set your rates. If your present car insurance company doesn't offer low mileage discounts, you should find a company that does. Use the Internet to search for companies that offer low mileage car insurance discounts . Use your favorite search engine and simply enter terms like "low millage car insurance" or "low mileage insurance discounts.
Many companies impose hefty cancellation penalties if you cancel your policy early. For instance, GMAC Insurance (now known as National General Insurance) offers a low-mileage discount to OnStar subscribers in 35 states. This is a pay-as-you-drive (PAYD) discount that makes use of telematics technology within the Onstar device. If GMAC finds that you drive less than 15,000 miles a year, you can quality for a discount, which may be anywhere from 10 to 50 percent.
Please help us keep our site clean and safe by following our posting guidelines , and avoid disclosing personal or sensitive information such as bank account or phone numbers. Any comments posted under NerdWallet's official account are not reviewed or endorsed by representatives of financial institutions affiliated with the reviewed products, unless explicitly stated otherwise. Have Low Mileage? You May Qualify for a Car Insurance Discount low mileage car insurance quotes. How to grab a low-mileage discount on auto insurance -- if you can auto insurance what is comprehensive. Car owners who are changing their driving habits because of soaring gas prices may be able to save a few dollars on auto insurance. Major car insurers including State Farm Mutual Insurance Cos., Travelers Cos.
State Farm's program earns drivers discounts ranging from 12% to 18%, says spokesman Dick Luedke. Car owners who drive more than that but less than they used to -- perhaps because they have started using public transportation or walking to work -- may also save on premiums, according to a study by the Consumer Federation of America. The group released a study Tuesday showing consumers could save 5% to 15%, amounting to $47 to $142 a year based on 2005 rates, when the average U.S. premium was $949, by cutting their mileage enough to drop into a different ratings category, say, from "drive to work" to "pleasure driving," says J. Robert Hunter, insurance director for the Consumer Federation of America. "Most insurance companies have a scale, and you pay more based on how much you drive. Each time you drive more, they charge you more," Mr. Hunter says. Depending on ratings factors allowed by state regulators, the savings can be even greater, he says. In California, for example, companies charge motorists based mainly on their driving history and miles driven, so driving more or fewer miles significantly affects the premium drivers there pay. Consumers should inform their agents of any big changes in their driving habits, says Mr. Hunter.
The insurers charge drivers according to when, how, and how many miles they drive, so that those who log fewer miles pay less. Progressive Group of Insurance Cos. pioneered its "MyRate" program, formerly known as "TripSense," in Minnesota, Oregon and Michigan several years ago, and anticipates rolling it out in six more states in the next few months, pending regulatory approval. In those states, drivers get a 25% discount off regular rates for participating.
Progressive also offers a low-mileage discount in four states. Since July 2007, GMAC Insurance from General Motors Corp. has offered eligible On-Star subscribers who drive less than 15,000 miles savings of up to 54% on their premiums, including an automatic 11% discount. The program is available in 34 states. Since 2005, Travelers recently started offering a 10% discount on most coverages for owners of hybrid or other gas-saving cars in 44 states. The company says that hybrid-car owners are generally good risks. Farmers also offers an average 5% discount nationally on all major coverages including liability and property damage, says spokesman Jerry Davies. NerdWallet strives to keep its information accurate and up to date. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Additionally, this site may be compensated through third party advertisers. However, the results of our financial services tools, blog content and reviews are based on objective analysis. For more information, please see our. *IntelliDrive discounts are applied at the vehicle premium level and do not.