Why does the mileage affect car insurance?

High mileage and insurance

Is it necessary to have an insurance?

Have youever wondered if you truly need an insurance for your vehicle? The answer tothis question will depend on your personal preferences and what you are willingto sacrifice for the desired outcome. Moreover, in some countries having at leastminimal package of an insurance is a must.

Sometimes payingpremium for the insurance of your vehicle pays off in the long run. Solely inUS there are around 16,500 car accidents per day. This number indicates howlikely you may be to become the victim of such misfortune. Similarly, it is usuallyquite problematic to determine whose fault was the accident. If the opposingside’s vehicle is insured, you may be at a disadvantage in such situation. Insurancecompanies are specializing on such cases and they know how to derive desiredoutcome for their clients.

Having aninsurance may seem useless for some of you, but will certainly pay off in thelong run. Especially if your annual mileage is higher than average, as itsignificantly rises the risk of being involved in a car accident.

Why do insurance companies care aboutmileage?

The mileage of the vehicle may not be an important factor in determining car’s condition, but it is frequently used by insurance companies for calculating annual payment for their services. How much you drive determines the probable risk of getting involved in a car accident. Consequently, annual mileage is frequently used for calculating how much you will have to pay to protect your car.

High-mileage and auto insurance

If you are one of those individuals who constantly driveslong distances you may have to pay premium for the insurance of your vehicle.Insurance companies are driven by risks associated with your driving habits andannual high-mileage is used to determine the level of risk.

Doyou belong to high-mileage drivers?

You may have asked yourself if youbelong to this category of drivers. 12,000 miles (19,300 KM) is perceived to bethe average mileage in most of the countries. Your country’s specificcharacteristics will determine these limits and it can vary significantly.

How much does insurance cost, depending on themileage?

Those who drive from 12,000 milesup to 13,000 miles (21,000 KM) are usually charged around 500 $ (460 €). However,above that limit the price can go up by around 20 % (up to 600 $). This numberswill vary depending on the country and the insurance company that you use. Eventhe average mileage might be different because of country specific characteristics.

Don’t be discouraged if you have annualmileage above 15,000 miles (24,000 KM). Prices increase insignificantly if youdrive above this limit. The difference can be around 2-3% for each extra thousandmiles driven.

How much insurance coverage does my carneed?

Insurance companies offer multiple packages that you canchoose from. To determine which one is the most preferable for you, it is vitalto consider approximate depreciated value of your vehicle. Usually the value ofthe car goes down by 20 % in the first year and by 10 % after each successive 4years.

P.S Simply looking for the used cars on sale in the internet will give an idea of the price of your vehicle.

How to choose insurance company?

To make sure that your insurance company is willing to coverany damage that was determined by the agreement, you have to look for the reviewsof the customers. Let’s face the truth, customers’ opinions are most reliablesource to get an idea about the service provider that we would like to choose.

Similarly, to make sure you are not paying too much, it isalways advisable to compare the prices of your favorite insurance companies foryour desired package. Even though, in most cases the price is an importantindicator of the quality, it can sometimes be an unnecessary extra expense.

How to be proactive and avoid payingpremium for the insurance?

Most of the insurance companies will either ask to you orcheck the vehicle on their own to calculate your annual mileage. Depending on differentrules, there can be plethora of sanctions that you may face in case of deceivingthem about your car’s mileage.

However, you can always be proactive and take certainprecautions:

InstallMileage stopper tool

There are many different options to stop the mileage. If you install one of these modules on your vehicle you can hinder your vehicle from counting unnecessary distance traveled. However, go for premium quality device to make sure all the other functions work smoothly. If you are one of those gearheads who is always willing to try new gadgets for his/her vehicle than you may consider installing Can Filter on your vehicle. Similarly, there are those who like testing their vehicle for the performance. This module can be used for such cases as well, as it is easy to install and can be turned on and off while in motion.

Take into consideration that using this device for otherthan testing and calibration purposes is forbidden by the law of many countriesand you have to avoid it certainly.

Tryto limit your daily travelled distance

Easier said than done! Especially if you drive on a dailybasis for different purposes. However, if you are reading this article you mayalready know that mileage is taken into consideration for determining car’sdepreciation. Hence, it is important to avoid unnecessary voyages that might decreasethe value of your vehicle.

There are other determinant factors as well

Even though mileage is one of the most important factors, whichmost insurance companies take into consideration, there are other factors aswell. If you take good care of your vehicle you may find an insurance companythat considers overall condition of the car. You may drive a lot but it doesn’tmean that risk of being involved in an accident will be the same as for thosewho are more reckless drivers.

Bestpractices to insure a high-mileage vehicle

Find“pay as you go” insurance company

There are companies which charge you for distance that youcover during a month. Basically, they care about your present habits and notyour past behavior. If you are able to lessen the monthly mileage of yourvehicle, by all means do it.

Findan insurance company that considers the general condition of the car

Aswe have already mentioned some Insurance companies are more willing to consideroverall state of your vehicle. Finding such company will allow to avoid payingpremium solely based on mileage of your vehicle.

Takeaway

The mileage significantly affects how much you are charged for the insurance. Therefore, it is always advisable to be cautions of the distance travelled on a daily basis. There are many options that will allow you to deal with this seemingly harmless number if your car’s mileage is not displayed appropriately. One of the most useful tools is mileage stopper device that will allow to correct your odometer if you use your vehicle for testing purposes.

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