While insurance companies base auto insurance quotes on many things, did you know that some of your driving habits can help you save money on your insurance premiums? An insurance company may ask you questions that relate to how much driving you do, and these questions are designed to help the insurance company know how much to charge you. Here are a few important things you should know about your car insurance and the amount of driving you do.
What is the most important factor that affects insurance quotes?
When an insurance company is asked to calculate a quote for auto insurance, the main goal the insurance agent has is to determine the risk level of the driver. A person that is placed in the low-risk category will always pay lower rates than a person in a high-risk category, but there are so many different factors that can affect the level of risk an insurance company places on a person.
What driving habits can affect insurance rates?
There are many driving habits that can affect insurance rates, but here are a few important ones the insurance company might ask you about:
- How many miles per year do you drive?
- How far is your commute each day?
- How many days a week do you drive your vehicle?
These questions matter a lot to insurance companies, and your answers can affect your rates. To qualify for discounts, you may need to drive less than a certain number of miles per year. This amount might be 7,000 or 10,000 miles per year. If you drive less than this amount, you may pay less for your insurance.
Policyholders that have short commutes to work might also be able to save money on car insurance, and people who do not drive every day might also be eligible for discounts. These discounts are available simply because driving less lowers your risk of getting into an accident.
If you are eligible for any of these discounts, the insurance company may ask you to verify the mileage on your vehicle right now and every few months or every year. This is done simply to make sure that you still qualify for low mileage discounts.
There are many different discounts available on auto insurance policies. If you would like to find out more about these, contact an auto insurance agency likeLA Insurance to request a free quote for car insurance coverage.