Most people know factors like accident rates, age, and vehicle type affect their auto insurance premiums. But did you know your mileage can also play a role in how much you pay? To better understand the connection between the two and what you can do to minimize your costs, consult the guide below. 

How Mileages Affects Auto Insurance

In a nutshell, higher mileage means higher auto premiums. This can be attributed to two primary reasons. First, the insurance company bases your monthly payments on how likely they think you are to file a claim. In their eyes, the more you’re behind the wheel, the higher the probability that you’ll get into an accident. 

A less important reason points back to the health of your vehicle. If the mileage on your car was high when you initially started your policy, the insurance company might suspect you’re more likely to experience breakdowns or mechanical issues. Even when those aspects don’t affect potential claims, they still paint a picture of your vehicle. 

They’ll also take the amount you drive and what you use your vehicle for into consideration. For example, if you use the car to get to work and your job is 20 miles away, you may face higher premiums. Conversely, if your car is mainly meant for personal use and you only average about 9,000 miles a year, you could get a lower rate. 

What You Can Do to Offset the Costs

If you’re looking for ways to bring down your auto insurance premiums, there are a few solutions available. First, see if there are areas where you can cut down your time behind the wheel. For example, could you take public transportation or a carpool to work? Could you ride a bike for errands? 

Next, if your vehicle is past its prime, consider the value in purchasing a new vehicle. Not only will you likely get a lower rate because of the mileage, but you may also be able to score some discounts for the improved safety features newer models have. 

Finally, if you can’t do anything about the mileage specifically, talk to your insurance agent to see what other options there are for discounts. For example, taking a defensive driver course or bundling auto coverage with another policy could be well worth your while. 

If it’s time to upgrade your auto insurance policy, turn to Farm Bureau of Mebane-Caudill Agency in North Carolina. Agents Jonathan Caudill, Alan Wilson, Jay Lee, and Eric Michaels have over two decades of experience, and they won the 2018 Readers Choice Award for Best Insurance Company in Mebane awarded by the Mebane Enterprise®. Visit them online to get a quote today. Call (919) 563-3276 to schedule an appointment.