Car insurance is a bill that most people cannot eliminate from their budgets, yet it is not a fixed expense. If you adjust your policy, you might lower the costs. One of the ways people save money on car insurance is by qualifying for discounts on their policies. A low-mileage discount is one option, and here are several things to understand about this discount.

Why Insurance Companies Offer Low-Mileage Discounts

Insurance companies base their rates on factors related to risk, and they factor in many categories to determine an individual's risk. One of these is the number of miles the person drives each month or year. A person who drives 1,000 miles a month has a lower chance of getting into an accident than a person who drives 5,000 miles. The less you are on the road, the lower your chances of being involved in a car accident. As a result, insurance companies view low-mileage drivers as less risky to them, and they offer discounts to these drivers.

How to Qualify for One

If you feel that you are a low-mileage driver, talk to your insurance company. They will ask you one main question, related to the number of miles you drive each month. If this number falls below their standard guidelines, you might qualify for a low-mileage discount. There is no standard number for the low-mileage discount. Instead, insurance companies develop their own rules and guidelines. One company might limit this discount to people who drive less than 8,000 miles a year, while others might allow 12,000 miles a year.

Ways to Reduce Your Driving to Qualify for This Discount

If you are close to the cut-off mileage amount and want to take advantage of this discount, you might want to find ways to reduce your driving. For example, can you carpool to work? Could you take public transportation to work instead of driving your car? Is there a way you could walk places instead of driving? If you can make a few minor changes in your life and driving habits, you might drive significantly less. As a result, you might qualify for the low-mileage discount on your plan.

If you are interested in saving money on your car insurance, ask your agent about the low-mileage discount they offer. If you qualify for it, you might save money on your car insurance premiums.Call an agent at a company like Kesner Insurance Agency Inc to find out more.