I own a car but live in an area where I can bike to work pretty easily, so I don’t drive much. My uncle told me he gets a low-mileage discount from Progressive. What is that, and how do you qualify?
to customers who put very few miles on their car each year. Usually, car insurance companies consider anything below 7,500 miles a year to be low mileage.
, offer low-mileage discounts, too. The amount of your discount will depend on your individual insurance rate and which company you go with.
Also, not all low-mileage discounts are calculated the same way. Here’s a breakdown of different types of low-mileage insurance programs you might find:
Traditional low-mileage discount: With this kind of discount, your insurance provider will contact you annually to collect your odometer reading and determine whether you qualify for a discount.
Telematics discount: Telematics discount programs will rely on a phone app or a plug-in device placed in your car to monitor your driving habits and mileage.
Pay-per-mile insurance: Also called usage-based insurance, this kind of policy uses telematics to establish a per-mile premium.
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