Car Insurance for Seniors and Low Mileage Drivers

Check out our guide for the best pay per mile car insurance deals below. Find an offer that helps you to save money on your car insurance!

Getting Familiar with Auto Insurance

Would you believe that there is a whole lot more to owning a car than just driving? Once you purchase a car, you automatically become responsible for every event that involves the vehicle. Because accidents can occur unexpectedly, auto insurance policies have been put in place to alleviate the effects of accidents on car owners. The car owner pays a certain amount of money called a premium regularly to an insurance company. In the event of an accident, the premium would cover any accident-related cost.

If you need help choosing an ideal auto insurance policy, then read through this article to find which suits you: pay-per-mile or a standard insurance policy.

Some factors determine the insurance policies of vehicle owners: gender, age, driving experience, traffic violation history amongst others. If you drive an SUV, you are more likely to pay a higher premium than someone who owns a sedan. But there is a catch! What if the person takes more risks – the more you drive your vehicle, the more risk you get exposed to – than you would you still pay the same amount? This is what begs the question: traditional or pay-per-mile insurance policy?

What is Mileage or Pay-per-Mile Insurance?

A pay-per-mile insurance policy allows you to pay a premium based on the number of miles you drive every month. The policy favors motorists who don’t ply the road frequently as they cut the unnecessary cost of insuring their vehicles. Imagine someone who only drives their vehicle twice each week paying about $200 as a premium for insurance. That’s outrageous, right? Thanks to the “pay as you drive” policy, you get to control how much of your finances go into insurance every month.

The pay-per-mile policy covers collision and comprehensive insurance, liability auto insurance, uninsured motorist, and roadside assistance. You get the same coverage as traditional auto insurance. However, the individual policy varies – the more you drive, the more you pay, and vice versa. One of the perks of pay-per-mile insurance is that rebates are given to individuals who drive below their expected mileage when the policy year is over.

Understanding Traditional Car Insurance

Traditional car insurance is the simplest auto insurance available to all vehicle owners. In states where auto insurance is compulsory, this insurance policy is ideal for car owners. Rather than paying from your pocket, the insurance company uses the premium to cater for all or most of the damage caused during motor accidents. You can always insure yourself further by obtaining additional insurance policies asides from the traditional ones. When listed in the contract, traditional insurance would cover:

Liability: The insurer would bear the cost of injury done to others and/or their properties.

Property: The policy protects your car from robbery and other forms of damage.

Health: All forms of medical attention - Injury treatment, therapy, and funeral costs are catered for in the policy.

The truth is one cannot be too careful. You aren’t the only motorist on the road, meaning you face different risks every day. Protecting your health and your vehicle is worth it in the long run.

Can Everybody get Mileage Insurance?

Your risk is the deciding factor. As long as you aren’t exposed to such risks, you are eligible for a mileage insurance policy. The following category of vehicle owners would benefit greatly from the mileage insurance:

• People who move around the city with public transportation.

• Vehicle owners who work remotely or close to home: They don’t need to travel to their workplace

• People who combine their outings.

• Motorists who have other vehicles or don’t drive often. Retired personnel and older adults fall under this category.

• Teenage and college-age drivers. They are usually regarded as safe and short-distance drivers.

Because of the risk, they are exposed to taxi drivers, long-distance drivers, and regular road users who are likely to spend more with the pay-per-mile insurance policy. A traditional auto insurance policy would be more effective as long as your vehicle is on the road.

What are the requirements to get one?

The following requirements must be met to get Mileage car insurance:

• You must not be younger than the legal driving age

• Your driver’s qualification: driving history, traffic violation records, credit score, and other financial information.

• Your vehicle must be equipped with an Onboard Diagnostics port (OBD-II)

Are the Rates for Low Mileage Car Insurance the Same Everywhere?

Your location plays an important role in setting premiums. This is because insurance policies differ from one state to another. Although not all insurance companies have a pay-per-mile insurance policy, you still get the best policies at competitive market prices.

Sometimes, insurers give the insured bonuses or add-ons. These benefits are included in the contract and may vary from one insurance company to the other. The following insurance companies offer great car insurance deals based on mileage:

• USAA:The insurance organization is the most cost-friendly amongst others in its category. The average low mileage premium was valued at around $830 per annum. By switching to USAA Auto Insurance , you can save as much as $720 every year. You can get a free quote for collision, comprehensive, liability, uninsured & underinsured, and full coverage policies.

• Geico:The premium in Geico would cost a low mileage driver about $1,100 yearly. The firm offers a competitive rate on coverage designed to meet your needs.

• State Farm: State Farm offers a wide range of auto insurance policies. By spending about $1,110 every year, you get access to various insurance discounts offered by the firm.

• Travelers:Low mileage drivers can insure their vehicles for about $1,230 per annum. Travelers is registered under the Travelers Indemnity Company, USA, and other countries.

• American Family:$1,350 every year is a reasonable insurance rate. American Family is there to save your life and your money also.

Pros of Pay Per Mile Insurance

Low mileage motorists get access to more rebates than traditional insurance.* Your per-mile rate reduces if you cover more than 240 miles in a day. In other scenarios, you may not be charged for the excess distance covered. The policy enables short-distance drivers to conserve money by paying less premium. Research has it that you can save over $500 each year on a pay-per-mile insurance policy.

The Downside of Mile-based Insurance

It isn’t cost-friendly for motorists who drive more than 10,000 miles in a year. As mentioned earlier, insurers have a maximum limit for vehicle owners who use this policy. If you aren’t careful, you would exceed the limit and end up paying more premium than a traditional auto insurance policy.

• Because not all insurance companies operate on the pay per mile policy, the offer isn’t available in all states.

• Some motorists get upset with the fact that they are being monitored. Not everyone would agree to install a tracking device in their vehicles.

Conclusion

If you feel your mileage would increase as time goes on, you consider sticking to a traditional policy. Pay per mile auto insurance policies help you save a considerable amount of money, provided you stick to the stipulated mileage.

A cost comparison is very important. Get quotes from different insurance companies and compare their coverage and prices. Always remember to cut your cloth according to your material.