Car insurance is a necessity for all drivers. Owning a car without insurance is risky and punishable by federal law. Whether you are a long-distance driver or you only use the vehicle to get to your office, it is mandatory to protect it, other road users, and yourself in case of an accident.
This blog will guide you through the process of getting low-mileage car insurance and what to expect. Understand that not all insurers will have equal offers, so it is best to compare before settling.
1 Qualification on Usage
The first step is to identify if your car qualifies for a low-mileage discount. Not every insurer offers this type of policy, but it is worth inquiring about. To qualify, you must have traveled less than 12,000 miles in the past year. However, various insurers have distinct policies. Some would require less, and some give you a higher limit.
Note that if you drive your car more than the set limit, you will not qualify for this policy and may have to pay a higher premium. You might also lose the no-claims discount you had earlier.
Some insurers offer a pay-as-you-go policy that would benefit infrequent drivers. This policy is excellent if you only use your car occasionally or seasonally. The beauty of it is that you will not have to pay a lot of money upfront, and your rates will significantly decrease.
In this case, your premium will depend on the number of miles driven in a year or a day, which makes it effortless to stay within the limit and save some bucks. Because of the new rule driving less than 50 miles a day, it would be beneficial to keep records of your driving habits to avoid getting overcharged. Also, check with your insurer about their offers to save on your premiums.
2. Take the Most Appropriate Cover
You already know that insurance comes in various packages, and it does not change for low-mileage drivers. The premiums you pay determine the cover you get. For instance, basic car insurance would only cover a few individuals when the accident is in a predefined circumstance.
If you are a low-mileage driver, it is advisable to take an insurance cover with a higher limit. It will ensure that, during an accident, your costs are not only limited to the repairs of the car but also medical bills and other associated expenses. Additionally, if you have any valuable items inside the car when damaged, they will be covered by the policy.
It is vital to state that each insurer has different limits for their policies; some go as high as $100,000 per occurrence. Take your time and research to see what most suits your needs, then compare with other insurers. You can never be too safe when it comes to accidents happening.
3. Shop Around for the Best Deal
Like any other service, you can always find a better deal when shopping around. Do not be content with the first offer you get from an insurer; compare and see what is out there. You might be surprised at the different rates each company charges for low-mileage car insurance policies.
Some insurers can also give you a discount for being a loyal customer or having multiple policies with them. It also pays to do the research and identify which company offers the best rates for your specific needs.
It is also notable that some of these discounts are only available during specific times of the year. It would be ideal to ask about this as well. Always remember that you are looking for value and not the cheapest option.
4. Hire an Expert
If you are unsure about an ideal way to get a low-mileage car insurance policy, it would be best to hire an expert. They will help you identify which insurer is most suitable for your needs and assist in the application.
Most of these professionals have contacts with various insurers, and they might get you a better deal than if you were to do it yourself. They can also help review your current policy and see if changes are necessary to qualify for a low-mileage discount.
Low-mileage car insurance is a significant way to save money on your premiums. However, it is not as simple as just asking for it. You have to take specific steps to ensure you get the best deal. You can always start by researching and shopping around for the best rates. Additionally, you can hire an expert to help you through the process if need be.