When you first buy a car and it has a remarkably low mileage reading, will this mean it costs less to insure than the same vehicle with a lot more miles on it? We know a lot of our clients are curious about how mileage affects car insurance, so let’s get to the answer!

Why do you need to disclose your annual mileage when you buy car insurance?

One reason many drivers wonder if mileage affects their car insurance is because it’s something you’ll be asked when you sign up for a new policy. But is this because a higher number means you’ll pay more in insurance? In many cases, the answer is yes!

But it might be for different reasons than you think. It’s not so much about more miles meaning your vehicle is more likely to need repairs. Instead, it’s actually more about how MUCH you drive. This can be an indicator of your risk as a driver. Naturally, someone who drives a lot more faces more risks as a driver. For someone with low mileage, it could mean they’re low risk because they don’t drive as much.

Low mileage discounts

Because lower mileage can mean you’re a lower risk driver, insurance companies are often eager to reward this in the form of a car insurance discount. That’s exactly what low-mileage discounts are for!

Some drivers try to take advantage of a low mileage discount by misreporting their mileage to their insurance company. But in some states, an annual inspection is required where your mileage could be recorded and shared with your insurance company.

Reporting your mileage

Even if you don’t live in a state where annual inspections are required, it’s still important to be honest about your odometer reading. Let’s say you were in an accident and your vehicle was sent in for repairs you claimed through insurance. When your car is being repaired, the odometer reading will be recorded. If it’s significantly different than what you reported to your insurance company, you’ll be left trying to explain this difference.

Would you like to learn more about your car insurance options and find out if you’re eligible for a low mileage discount? Give us a call today!