Insurance carriers often allow up to 20 miles each way for commuting before increasing rates. Insurance companies use the figure to help determine whether an applicant’s annual mileage estimate is realistic. “Commuting miles” is the term used for the number of miles it takes for a policyholder to get to work and back. What Are Commuting Miles?Ĭommuting to work is the primary reason most people drive an automobile. For commuting, business, or pleasure, the type of driving you do affects how much you pay for car insurance coverage. Having a shorter commute might produce a lower premium. Other carriers may perform random mileage checks to avoid “soft fraud” when figures reach below average miles.īe sure to let your insurer know if your driving circumstances change. Some companies request odometer reading updates. The insurer will learn the vehicle’s mileage if a claim gets made. While there might not be a legal consequence for underestimating your annual mileage on the application, it could become problematic if you get into an accident. It’s best to make an honest mileage estimate for how much you drive. #Drivers Should Be Aware That The Average Person Travels About driversTypically, insurers ask about average annual miles when drivers apply for a policy. Insurance companies use the number of miles you drive each year - along with other criteria such as age and experience - to predict your risk and set your premium accordingly. Motorists who spend more time on the road have a greater risk of filing an insurance claim than infrequent drivers who are less likely to have an accident. Your annual mileage directly affects how much you pay for car insurance. How Does Annual Mileage Affect Insurance Rates? That’s when the DOT said the average miles driven fell 10.3%. This number has dropped drastically since the COVID-19 pandemic forced lockdowns beginning in 2020. Without vast public transportation systems to rely on for many Americans, cars allow many drivers to get to work, school, or recreation.Īccording to the United States Department of Transportation Federal Highway Administration, Americans drove more than 3.26 trillion miles in 2019. People rely on their cars because public transportation systems vary by location. By comparison, the DOT said the average annual miles was 13,476 in 2018. That’s roughly 1,200 miles per month per driver, or about 39 miles per day. The United States Department of Transportation Federal Highway Administration said that the average person drove 14,263 miles per year in 2019. Understanding your average mileage per year and other driving habits can help you keep your insurance rates in check. Why? Because the more you drive, the more likely you’ll be involved in an accident. You can casually use this number to determine whether a vehicle gets used less than or more than usual.īut car insurance companies use average annual miles data points as one factor that influences your rate. Average annual miles indicate the number of miles drivers typically travel during the year.
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