It’s not as simple as comparing prices when looking for the best auto insurance policy, because sometimes what makes one plan great is what makes another a poor fit. The insurance business has moved toward personalized options using actual driving behavior. Regardless of whether you are an every-day driver, a weekend warrior, or a driver who ponies up thousands of highway miles a year, making sure that you are choosing a policy that matches your true risk profile is a must. Given that, it’s best to talk to an insurance agent early in the process so you can make sure you’re on the same page when it comes to the cheapest and most protective levels of coverage.

How to Find Car Insurance That Fits Your Life

It’s no secret that the way you drive — including how much, how far and in what conditions — will be a key component in finding the right policy for you. With so many options, it can be overwhelming to find auto insurance that suits your needs and budget.

Assess an Annual Mileage as it Is

One of the most important factors, which affects insurance price, is mileage. The longer you are on the road, the more likely you are to get in a crash.

Most drivers fit into one of three mileage ranges:

| Mileage Level | Explanation | Insurance Call-To-Action | | --- | --- | --- | | Low Mileage (≤7,500 miles/year) | For retirees, home workers or secondary vehicle owners | Consider mileage-based/pay-per-mile | | Average Mileage (7,500–15,000 miles/year) | Everyday commuters and skivvy runners | Choose full package with accident forgiveness | | High Mileage (15,000+ miles/year) | Salespersons, delivery drivers, long-haul commutes | Go for full-on comprehensive cover |

Proof of mileage, such as vehicle odometer readings or telematics information, is frequently taken as part of the underwriting process by insurance companies. If you estimate too low, you could end up with a fight from the insurer, and if you estimate too high, you could end up paying a higher premium than you have to.

Tailor Coverage to Your Commute

The distance you travel to work plays a big role in the probability that an incident will occur. Knowing this risk factor will allow you to fine-tune your policy.

It depends on a lot of things, such as:

• City Drivers: Congested traffic, frequent stops and starts, and a greater probability of having an accident, require more liability and collision protection.
• Suburban Commuters: Medium risk because of lengthier, less crowded commutes. A mix of liability and full-coverage car insurance often makes the most sense.
• Drivers in the ‘Sticks: Less traffic, but long distances to get anywhere, as well as high speeds and likelihood of wildlife encounters. A full-coverage policy that includes roadside assistance might be a better fit.

Some insurers provide discounts or programs geared toward commuters, or those who use public transit. If you use public transit occasionally, or telecommute part of the time, check to see whether you’re eligible for a discount with your insurance provider.

Determine Exposure to Risk Beyond Just Mileage

Many drivers forget to consider potential non-mileage-related risks when it comes to choosing their auto insurance. But premium rates can be dramatically affected by things including parking environment and time of driving, or even seasonal use.

Typical scenarios of high risk are:

| Risk Factor | Example | Recommended Coverage | | --- | --- | --- | | Nighttime Driving | A high proportion of fatal crashes happen at night | Higher liability and uninsured motorist coverage | | City Parking | Risk of theft or vandalism in city streets or lots | Comprehensive coverage | | Seasonal Weather Conditions | Areas where it snows, hails or floods frequently | Comprehensive and weather-related add-ons |

For instance, if your car gets parked on the street in a congested neighborhood, you would want to get comprehensive coverage with a small deductible. Conversely, if you keep your vehicle in a garage and live in a low-crime neighbourhood, you may enjoy cost reduction with few downsides.

Just Go with UBI (Usage-Based Insurance Pgm.)

Usage-based insurance is becoming increasingly popular in the auto insurance industry. These programs employ telematics devices or mobile apps to monitor driving behaviors, like braking habits, speed and time of day.

They are ideal for:

• Low-mileage drivers
• Safe driving record holders
• Drivers who would be willing to let their driving be monitored digitally

But not all programs are the same. Some just monitor miles - others check more general behavior. Check out what the privacy rules are and the scoring methods before you sign up.

Learn the Basics of What’s Required by Law, and That’s It

Minimum auto insurance coverage is required by every state, but the legal minimum requirement in your state is rarely enough for the protection most drivers need.

These are the legal categories:

• Liability insurance: Protects you from bodily injury and property damage you cause.
• Personal Injury Protection (PIP): Mandated in some states for medical costs.
• Uninsured/Underinsured Motorist: Coverage if other driver is uninsured/underinsured.

If you want the right policy, you are going to have to look beyond the minimum and consider higher coverage limits if your driving exposes you to higher risks.

Discounts Can Help Offset Cost to Coverage Ratio

Carriers have a variety of discounts available to help you save money on a higher level of coverage.

Common ones include:

• Good Driver Discounts
• Low Mileage Discounts
• Costs Associated with Homeowners or Renters Insurance
• Discount on Auto Safety Features
• Paperless-Billing and Auto-Pay Discount

Use this checklist to compare insurers and determine where you may be able to save.

How to Think About Reviewing Your Policy Regularly

And even if it’s the right policy for your household today, it might not be the best option six months or a year from now. Life events, such as moving, changing jobs or getting a new car, can change your risk profile.

Here are two simple ways to keep on top of your insurance requirements:

• Mark your calendar every 6–12 months to revisit your policy information.
• Speak with your insurance agent and see if the way you’re driving is the same as it was when you signed up for your policy.

Compare This-to-That, What it Means for Deductibles vs. Premiums

Having a lower deductible means you’ll have to pay less out-of-pocket when you make a claim, but the monthly premium will be higher. If you hardly drive or are a very safe driver, going with a large deductible can save you a lot in premium.

| Amount Deductible | Premium Increase (Approx) | Fits | | --- | --- | --- | | $250 | High | High-risk area, daily driving | | $500 | Middle | Most drivers | | $1,000+ | Low | Low-risk, low-mileage driver |

The latter is an important trade-off especially for drivers that only drive their car at certain times (weekend driving).

FAQs

What is the best auto insurance for low-mileage drivers?

Policies that have mileage-based rates or discounts for low mileage are ideal for drivers that travel less than 7,500 miles per year. These can even be usage-based insurance offers.

Could my premium be affected by commuting distance?

Yes, drive time and frequency are big risk factors for insurers. Higher premiums are usually a reflection of the length and frequency of your commutes.

Is usage-based insurance safe (and worth it)?

Usage-based insurance is secure for the vast majority of drivers, and it can lead to considerable savings. The caveat is that bad driving behavior monitored by telematics could lead to costlier insurance rates.

If by law I am only supposed to have this much coverage by law should I increase it?

Yes, the laws are frequently not protective enough at the minimum amounts. Paying more to have higher liability limits and more types of coverages is also prudent, depending on how often you drive.

How does parking location affect my insurance?

It will certainly raise your comprehensive premium if you park in an area of high theft or on the street. Garaged cars in low crime rate environments often generate lower rates.

If my driving habits change, can I adjust my policy mid-term?

Absolutely. Reach out to your insurance agent whenever your lifestyle or driving habits change to make sure your coverage still accurately reflects how much of a risk you present.

Conclusion

When selecting the right car insurance for your driving habits, there’s more to consider than just the lowest price. It must come with a careful consideration of your mileage, commuting habits, and overall risk profile. Whether you’re racking up high miles on highways or making two local trips a week, customizing your policy means the difference between financial security and stress.

Remember that you should revisit your policy periodically and speak to an insurance representative when your driving situation changes. Your odds of saving money while remaining adequately covered go up the more closely your coverage resembles your real-world behavior.