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How Does Mileage Affect Car Insurance

When you buy a car, you’re likely thinking about how much it’s going to cost to insure it. But how does mileage affect car insurance? And how can you use this information to save money? Mileage is one factor that car insurers take into account when setting rates. The more miles your car has on it, the higher the rate will be. This is because cars with more miles are likely older models that have been driven more often and are therefore more likely to be involved in accidents. If you want to lower your car insurance rates, consider trading in your older model for a newer one with less wear and tear. You can also try to get uninsured motorist coverage, which will protect you if you get into an accident without having insurance. And finally, always keep your car clean and properly insured so that it’s less likely to be involved in an accident.

The Purpose of Car Insurance

The purpose of car insurance is to protect drivers and their vehicles from financial loss in the event of an accident. The amount of coverage a driver needs ranges depending on their driving record, the make and model of their vehicle, and the state in which they reside.

In general, the more miles a car has been driven, the higher the premium will be. This is because insurers consider a car’s history when setting rates. Drivers who rack up more miles than average are generally considered safer drivers and are thus rewarded with lower premiums.

On the other hand, young drivers who have never had an accident typically pay less for car insurance than older drivers with a long history of driving accidents. This is because insurers use risk scores to determine how much coverage to provide each driver.

How Distance Drives Up the Cost of Car Insurance

The average car insurance premium for a driver with a classic, five-year plan is about $1,200 per year. The premium goes up by around 25% for every 10,000 miles you drive over the baseline. The higher your mileage, the more expensive your premiums will be.

There are three main reasons why driving distance affects car insurance premiums: 1) The riskiest drivers typically live and drive in locations that are far from high-risk areas; 2) Driving is a risky activity and statistically you’re more likely to get into an accident if you drive a lot; and 3) Car insurers can charge higher rates for vehicles with higher collisions rates.

The Effect of Mileage on Car Insurance Rates

When you buy a car, the dealer will almost always require that you provide proof of insurance. This proof of insurance is usually your driving record and the odometer reading from when you bought your car. If you have had your car insured with the same company for a while, your rates may be lowered because of the mileage that your car has accrued. However, if you are switching to a new company, your rates may go up because of the mileage on your car.

The main reason why rates go up or down based on mileage is because it affects how much coverage you are able to buy. The higher the miles on a car, the lower the amount of coverage it will carry. For example, if your car has 10,000 miles on it and is listed as carrying $500 worth of liability insurance per person, but has 12,000 miles on it, the policy would now only cover $400 per person.

There are many factors that can affect rates including age, make and model of vehicle, and credit score. However, mileage is one factor that tends to play an important role in rates.


It can be tough to know how much mileage your car has covered in order to find the right car insurance for you. Thankfully, this article will help you figure out how mileage affects car insurance and what steps you should take to ensure that your policy is tailored specifically to your needs. By knowing your overall mileage and vehicle type, you’ll be able to keep yourself and your loved ones safe on the roads.

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