A Mileage Discount?


Have You Asked for a Mileage Discount?

More than 4 out of 5 Americans have not asked their car insurance provider for common discounts that could save up to 25%, according to a new insuranceQuotes.com report. The survey asked about low mileage, marriage, occupational, good student, and defensive driver discounts. All these need to be self-reported and can save drivers a substantial amount of money – that is, if you take the time to inform your insurance company.

Someone who drives 5,000 miles annually pays an average of 8% less than someone who drives 15,000 miles each year. The average savings is highest in California (25%), followed by Washington, D.C. and Alaska (both 11%). The only state that doesn’t reward drivers for logging fewer miles is North Carolina.

Insurance companies also charge married people less, but only 13% of Americans have let their insurance carrier know that they tied the knot. The savings is greatest for young adults (a married 20-year-old pays 21% less than a single 20-year-old). The gap narrows to 7% at age 25 and around 2% after age 30.

Certain occupations (e.g., teachers, nurses and accountants) are viewed as safer drivers and qualify for discounts from many insurance companies. But again, few Americans are asking for this discount (just 8% have done so).

All of the 10 largest car insurers give good student discounts, yet just 21% of millennials and 20% of the overall population have asked for one of these. The percentages are similar for defensive driving courses.

“These discounts can add up to hundreds of dollars per year, and in many cases, they reward people for things they were already doing,” according to Laura Adams, insuranceQuotes.com’s senior analyst. “I encourage everyone to be proactive and seek potential discounts at least once a year; it should only take a few minutes.”

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