Own a Low Mileage Vehicle? Learn to Get Cheap Car Insurance

Assuming you don't drive very much, or your family have got a second, lesser driven vehicle, or perhaps a work vehicle, - low mileage discounts are the perfecr solutions for saving on car insurance.

Ways to get cheap car insurance for a low mileage car

Pay-As-You-Go

If you have a Pay-As-You-Go insurance plan, than your premium adjusts depending on the number of miles you drive. These plans have multiple benefits: they save you money, encourage users to drive less and drive more environmentally friendly, and this therefore lowers your transportation costs. GMAC is one example of an insurance company with this type of program. These types of programs have been popular in Europe for a while, but have only recently made their way to the United States. Therefore it might be hard to find such a program, but they do exist!

MyRate Program by Progressive

Progressive Auto Insurance is a popular insurance company that provides a "MyRate program." This program gives drivers who do not drive after midnight, have a good driving history, and drive less than 10,000 miles per year a discount of up to 25% on their premiums. Progressive provides a device that you hook up to your car so that they can monitor your driving habits.

Tracking Systems

Like Progressive, OnStar also has a tracking device. Some insurance companies take your word for it on how many miles you drive during your initial quote. However, if you need to submit a claim, you may need to prove how much you drive per year. Other companies will require you to sign up for a monitoring service, such as OnStar. These types of services determine your mileage and driving habits in real-time so that discounts can be applied. OnStar has many benefits outside of insurance discounts, and may be a good option for your family.

These are only some of the options available on the market today from some of the top insurance companies. For obtaining cheap car insurance, don't hesitate to inquire what discounts are available to you is to ask! Comparison-shopping is a great way of making sure you are getting the best deal. Using the Internet is the easiest way to look around and research the type of insurance coverage you require.

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Cheap car insurance and usage-based insurance

It's curious how quickly an idea either takes off or dies the death. What was casually called pay-as-you-go has now become a highly competitive market. If you ever wanted proof of just how competitive, you only have to look at the court roster where you find Progressive suing State Farm and The Hartford for alleged infringement of patents. You may well throw up your hands in despair. We are used to seeing technology companies accuse each other of copying the other's patent for an on/off switch, but patents also cover any business ideas that no one has registered using those words before. So Progressive claims it registered the idea of using technology to monitor how far and how well people drive and to offer discounts to all the safest drivers. Now we have to wait for a judge to say how obvious this business plan is and that it should never have been registered as a patent. Until then, attorneys are collecting their usual high fees to fight it out to the death.

So what exactly is Progressive offering that it feels must be defended so aggressively? In most states, this insurer was the first to offer a black box for monitoring driving behaviour. The most recent version is called Snapshot. What makes this so interesting is you can run it for a one month's trial while holding your existing policy. This gives you a direct comparison and tells you exactly how much you will save if you make the switch. If you decide not to switch, there's no comeback. Progressive simply recovers the hardware link and looks for business elsewhere.

Why is usage-based insurance the best chance for inexpensive car insurance? The answer comes in two different ways. The first relates to the number of miles you drive and the time of day you drive them. The statistics show low milage drivers have the smallest numbers of accidents, particularly if you drive at off-peak times. Second we come to the way you drive. Gentle acceleration, modest braking, no violent swerving all indicate a safe driver. That earns you cheap car insurance. All the insurer has ever wanted is proof you are safe. Now technology supplies that information you can earn maximum discounts.

More about → Cheap car insurance and usage-based insurance