While your automobile insurance is a necessary expense, it can be costly if you drive too little. Doesn’t it sound absurd to shell out hundreds of dollars annually to insure your vehicle?
Apart from the mandatory auto insurance, there’s comprehensive insurance and a large bag of add-ons.
It’s natural to look out for car insurance for low mileage motorists, which can be affordable as well as effective in providing security to your vehicle.
No wonder why Canadians reach out to established insurance brokerages to get the best quotes.
In this post, we have discussed what ‘low mileage’ means and how you should proceed while purchasing insurance cover for these cars.
If you are looking for affordable car insurance for low mileage drivers you can reach out to the talented team at Surex by clicking the following link: https://www.surex.com/insurance/auto-car/alberta. Their amazing team of insurance brokers can help you save significantly on your insurance premium by providing you with affordable quotes from the top-rated carriers in the country.
What is low-mileage driving in Canada?
Before delving deeper into choosing the right auto insurance policy for your car, let’s understand what ‘low mileage’ means for your car in Canada.
Different insurance companies in Canada have set their individual parameters to define ‘low-mileage’. So, there’s always some grey area that would need professional clarification. While some companies consider driving around 12,000 miles annually to be low mileage, others have set this benchmark at around 20,000 miles.
Therefore, whether you qualify as a low-mileage driver depends on the insurer you approach, the model you drive, and other details the insurance company prescribes.
However, if you qualify for low mileage car insurance, you can save as much as 40% on your auto insurance policy. So, when you know that you won’t be driving much, why go for the standard car insurance policy? Experienced insurance brokers in Canada can help you find the best quotes by comparing several insurers as per your requirements.
Understanding the concept of a user-based car insurance policy
While exploring car insurance for low-mileage drivers, it’s imperative to understand the concept of a user-based car insurance policy. Some car insurance companies in Canada have rolled out policies where they calculate the premium based on the number of miles you travel.
Although this model of calculating car insurance premiums is relatively new, they are highly customizable. Most importantly, sophistication in technology enables you to count the miles you are traveling each day. Besides, several tracking devices and apps are available that would help you keep an eye on the distance traveled.
To qualify for a cheaper policy, you need to drive 26 or even fewer miles each week to qualify for a cheaper policy. These policies suit drivers who use their cars to travel very short distances each day. If you happen to be a driver who doesn’t use the car too often or doesn’t travel too far from your place with your car, these policies should be perfect for you.
How do auto insurers track your mileage?
Once you choose car insurance for low mileage motorists, your insurer will measure the distance covered using an app. This would keep track of the odometer of the car.
Some insurers also track the VIN (Vehicle Identification Number) of the insured driver. Every time you get across to your automobile mechanic, they record the odometer figures. By scanning these records later on, the insurer can determine the distance traveled.
Considering the sophistication that automobile technology has undergone all these years, it’s possible to gain transparent insights into the distance covered by your car.
Traditional concepts of low and high mileage
Now that you know the insurers offer affordable car insurance policies to low-mileage drivers let’s look at how they calculate the mileage. Most insurers consider your annual mileage as the parameter when determining the premiums.
- Low-mileage: If you drive less than 10 miles daily or 7,500 miles a year, some insurers consider it low mileage. To determine the exact figure that would make you eligible, the best option is to consult an insurance brokerage.
- Average mileage: Drivers traveling around 20 miles a day with their cars or between 7,500 to 15,000 miles a year come under the average-mileage category. Although the mileage is more than the previous category, you can still qualify for a rebate or discount.
- High mileage: In case you drive more than 40 miles a day or more than 15,000 miles a year, some insurers would categorize you as a high mileage driver. However, the best insurers are lenient when it comes to mileage. You can even consult the experts to find insurers ready to consider 20,000 miles a year for a discount.
Each year, low-mileage drivers can save around $56 on automobile insurance compared to drivers who qualify for the average mileage category.
How to find the best insurer offering low-mileage policies?
Car owners often face a dilemma while choosing the right low-mileage car insurer. Particularly, when each insurance company comes with its own set of parameters to calculate your eligibility, the process turns out to be confusing.
Based on the number of miles you drive on average, they will be able to recommend you the right policy. This way, you can significantly save your premiums.
Car insurance for low mileage motorists in Canada — Endnote
While shopping for your new car brings you specific challenges, you would try to save as much as possible on your premiums. In Canada, thousands of drivers currently vouch for the pay-per-mile insurance model. Thanks to reputed insurance companies, you have the liberty to choose from several packages. Consulting an insurance expert can help you tailor the policy to your requirements.
Rather than going for the standard policy where you would be squandering your money, it makes sense to purchase a car insurance policy for low-mileage drivers.
While you would enjoy sufficient coverage, rest assured that you won’t unnecessarily pay high premiums to the insurance company.