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What is Considered Low Mileage for Car Insurance

The definition of low mileage for car insurance purposes can vary depending on the insurance company and the type of policy. In general, however, low mileage is typically defined as driving less than a certain number of kilometers or miles per year.

Many insurance companies consider low mileage to be around 12,000 kilometers or 7,500 miles per year. This is because drivers who drive less are less likely to be involved in accidents, which means they are less risky to insure.

If you drive less than the average number of kilometers per year, you may be eligible for a low mileage discount on your car insurance premiums. This can result in significant savings on your insurance costs, as much as 10-20% depending on the insurance company.

It’s important to note that each insurance company has its own criteria for determining what is considered low mileage. Some insurance providers may offer a low mileage discount for driving as few as 5,000 kilometers per year, while others may require drivers to limit their driving to less than 8,000 kilometers per year to qualify. If you are interested in a low mileage discount, it’s best to contact your insurance provider to see if you qualify and what the specific requirements are.

If you don’t drive often in Ontario, you may be interested in finding car insurance that reflects your low mileage. Here are a few options to consider:

  1. Pay-per-use insurance: Some insurance companies offer pay-per-use or usage-based insurance policies that allow you to pay for insurance only when you use your car. These policies may require the use of a telematics device that tracks your driving habits, and premiums are based on how much you drive.
  2. Low mileage discounts: Many insurance companies offer discounts to drivers who drive less than the average number of kilometers per year. If you drive less than 12,000 kilometers per year, you may be eligible for a low mileage discount on your insurance premiums.
  3. On-demand insurance: Some insurance providers offer on-demand insurance policies that allow you to purchase coverage only when you need it. This can be a good option for people who only use their car occasionally.
  4. Bundled insurance: If you have other insurance policies, such as home or life insurance, you may be able to bundle them together with your car insurance to save money. Some insurance companies offer discounts for bundling multiple policies.

It’s important to shop around and compare quotes from multiple insurance providers to find the best policy and rates for your specific needs. Additionally, it’s always a good idea to ask your insurance provider about any available discounts that may apply to your policy.

What happens if I misreport the distance I drive?

insurance denied

About the Author: Robert Davis

He is an insurance content professional with vast knowledge and a special aptitude and interest in imparting insurance education. He has authored many articles on insurance.

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