For whatever reason, you barely drive anymore. If this describes you, you may not have to buy a regular car insurance policy anymore. If your car is collecting cobwebs in your garage, you might want to look into limited mileage car insurance. Limited or low mileage car insurance is a type of coverage that determines your premiums based on the amount of miles you drive. In other words, the less you drive, the less you pay. Despite the many benefits of low mileage car insurance, some critics see some drawbacks to this program, which is starting to grow in popularity both in the United States and abroad.
The Benefits of Limited Mileage Car Insurance
There are several categories of motorists who can benefit greatly from a limited mileage car insurance program. See if you find yourself in one of these categories:
• Infrequent Drivers: Maybe you live in a large, metropolitan area. Perhaps everything you may need is within walking distance. You might just prefer to be the backseat driver. Your reasons for sporadic driving may vary, but they all give you good reasons to consider buying limited mileage car insurance
• Environmentalists: You’re a tree hugger. You stay home from work every Earth Day. If you’re serious about lessening your carbon footprint, limited mileage car insurance could be a great way to encourage you to stay green
• Owners of Multiple Cars: You have one car for everyday use and one or more secondary vehicles which are seldom driven. If you don’t plan on selling or giving away these cars, limited mileage car insurance should keep the insurance costs for multiple vehicles down.
The Drawbacks to Limited Mileage Car Insurance
Despite the many benefits to this type of coverage, some naysayers see some drawbacks to the program. One complaint that is often voiced is privacy concerns. Critics state that if you have a telematic tracking device installed in your car, your insurance company can keep a record of your whereabouts. Another downside to this program that other disparagers mention also relate to the telematic tracking device. They feel that some insurers can penalize drivers for offenses related to faster driving such as speeding while ignoring traffic offenses that are committed while driving at a slower pace, such as abrupt turns and ignoring red lights.
How to Decide if Limited Mileage Car Insurance is Right for You
When considering limited mileage car insurance, you should ask yourself a few questions. They include:
Do you foresee a circumstance in which you might see a period of increased driver activity? For example, you may need to go out of town. If you own more than one car, your primary car might be in need of repairs.
Do you really need multiple cars? Selling your secondary vehicle will eliminate the need to buy insurance for two or more cars. It also puts some money in your pocket.
Are you comfortable with the idea that your insurer could be keeping tabs on your vehicular constitutions? If the answer is no, ask your insurance company if they use tracking methods other than those of the telematic kind.
Low mileage car insurance isn’t for all drivers. While it has the potential to save you a lot of money, you have to make sure that your occasional motorist status stays that way for quite a while in order to get the full benefit of the savings. Asking yourself motorist lifestyle questions and doing some research into tracking methods will provide you with enough information to help you make an informed decision.