Do you own a vehicle that you might not drive every day? Whether it is an extra vehicle or you just no longer drive that much anymore, this is a question we get frequently.
Will be auto rates go down if I rarely drive this vehicle?
For years, auto insurance rates used rating factors like the number of miles driven annually or the type of usage you used the car for. These included:
- Pleasure Use
- Drive to and from work
- Business use
By changing from one usage to another, rates would fluctuate. Maybe not by a lot but you would see a slight difference.
The same would be true for the annual mileage driven, if you drove your vehicle under 10,000 miles a year or over 15,000 miles, you would see some price changes.
Now while these questions are still important to the insurance company, they no longer play a huge role in calculating your auto insurance rates.
Tier based rating
The insurance company’s over the based ten plus years have switched to a tier-based rating. They use 100’s of factors that develop your individual rate.
As we said, how frequently and how much you drive your car is a question built into the rating but there is no longer a difference between some of the rates.
Pleasure Use and Drive to and from work are the same rates. And unless you drive over 25,000 miles a year you won’t see a difference there either.
Insurance rates are all based on data. The claims data they have shown exactly who the type of person is that will get into accidents. From younger teenage drivers to drivers of specific vehicles, to different areas of the country.
In the recent data collection, they realized that frequency of driving does not play a big difference anymore.
Ways to lower your rates.
Driving your car less might seem like a great way to get your auto insurance rates lower but unfortunately, it won’t help much.
Using an independent insurance agent who has multiple company’s and can shop your insurance rates around is a better alternative.
Reach out to your insurance agent to have this conversation, if you don’t have a relationship with an agent or want a review of your insurance then click the button below to schedule a review with one of our trusted insurance advisors.