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You may be asking your self why do auto insurance companies ask for mileage and odometer reading at the time of buying a policy? The reason is; that the average mileage you cover directly affects the car insurance rates.

The usage of annual mileage data differs from one company to another. Some companies ask for the data once while selling the policy while others ask for regular updates. This is a way to avoid soft fraud in the insurance industry.

What is considered low mileage for car insurance?

On average; we drive around 37 miles per day which is almost 13,000 miles per year. Now most drivers think any number less than 37 will be considered low mileage. But that is not true.

Driving less than 20 miles per day is considered low mileage for car insurance. There are some companies that might give you leverage on 25 miles per day too. But it differs from company to company.

You’ve Already Earned a Discount on Auto Insurance