Car Insurance Rates for Very Low Mileage

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:

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.
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.
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.
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?

Misreporting the distance you drive can have serious consequences, both financially and legally.

If you under-report the distance you drive in order to get a lower insurance premium, you are essentially committing insurance fraud. This is a serious offense that can result in legal consequences, such as fines or even imprisonment. In addition, if you are involved in an accident and the insurance company determines that you have misrepresented the distance you drive, they may deny coverage for the claim, leaving you personally responsible for the costs.

Over-reporting the distance you drive can also have negative consequences. If you pay a higher premium based on a higher reported mileage and you end up driving less than expected, you may be eligible for a refund or a lower premium. However, if you do not report the change in mileage to your insurance company, you may be paying more than you need to.

It’s important to accurately report the distance you drive to your insurance company in order to ensure that you are properly insured and that you are paying the correct premium. If your driving habits change significantly, such as if you start working from home and drive much less than before, it’s important to notify your insurance company so that they can adjust your policy accordingly.

Low mileage car insurance for seniors

The cost of low mileage car insurance for seniors in Ontario will depend on a variety of factors, including the driver’s age, driving history, and the insurance provider. However, here is a sample of average costs for low mileage car insurance for seniors in Ontario as of 2021:

Belairdirect – Average annual rate of $1,029
Desjardins – Average annual rate of $1,063
Allstate – Average annual rate of $1,086
Intact – Average annual rate of $1,093
TD Insurance – Average annual rate of $1,128

It’s important to note that these are just averages and individual rates can vary greatly depending on the specific circumstances of the driver and the policy. Additionally, the cost of insurance for seniors may vary depending on whether the driver has completed a driver education course or if they are a member of a seniors organization. Discounts may also be available for low mileage or infrequent drivers.

If you are a senior and you don’t drive often, it’s a good idea 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.

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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