Car insurance for car you don’t drive that often

Qualifying for discount car insurance for the occasional driver. Notwithstanding state laws, there are a variety of plans auto insurers offer for those of you seeking car insurance for a car that you don’t drive that often. 

Car insurance for car you don’t drive that often, otherwise known as ‘occasional use car insurance,’ is still required in most states, nevertheless, drivers may be eligible for low-mileage car insurance discounts which in some instances can reduce car insurance rates by 30 percent.

Although the reliance on vehicles in the United States is still very prevalent, some vehicle owners choose to drive their cars only occasionally. These cars by law still need to be insured, even if they act more as a decoration in the driveway than a mode of transportation. So, how can drivers get a discount on car insurance on a car that they rarely drive? 

Car insurance discount on a vehicle that you rarely use

Lowering car insurance premiums for the occasional driver key take aways: 

* Anyone who owns a car must comply with the state’s car insurance laws even if they only drive the car occasionally

* Most states have mandatory insurance laws, but there are states with alternative options to prove financial responsibility.

* If you only drive your vehicle occasionally, it’s possible to save money on your car insurance on a car you rarely drive – perfect and appealing for the weekend get-away driver. 

* Make sure to calculate how much you think you’ll drive your car and take advantage of a low-mileage discount.

* Vehicles that aren’t used often may also qualify for a pleasure usage and extra vehicle rating that saves money.

As much as you don’t want to pay for auto insurance, especially for a vehicle that you know you’re likely not to drive that often, occasional drivers can still qualify for discounts. The rate and type of discount auto insurance vendors offer will often come down to how you use your vehicle along with how often you use it.

Those who use their cars a lot, from a ‘risk analysis’ point of view correspond to a higher exposure to risk as opposed to those who don’t often drive or use their vehicle. The less that you’re exposed to a potential loss, the less that you’ll pay for your insurance given the decreased likelihood of causing or being involved in an accident- forcing the auto insurer to make a payout on your policy.

Here are some ways occasional usage can act as an offset on rates. Below are some ways (not conclusive) of how auto insurance companies calculate risk.

• Vehicle usage rating — if you only drive around town for personal use, you can classify yourself as a pleasure user and save money compared to commuters
• Annual mileage rating — you’ll be asked to estimate how much you’ll drive your car. Vehicles that fall into a low mileage bracket will receive a low-mileage discount
• Daytime driver — mature drivers over 55 may be able to get a discount off of their coverage if they only drive their car during daylight hours
• Multi-car rating — when you own another car in the home, you’ll automatically get a multi-car discount off of both cars
• Extra car rating — if you have more cars in your home than licensed drivers, you may receive an extra car rating

Do insurance companies offer short-term coverage?

Weekend-only car insurance or short-term car insurance is not readily available through most major auto insurers. These insurance companies typically don’t offer weekend car insurance because it adds risk and unpredictability. It’s difficult for car insurance companies to enforce timed driving restrictions: you could violate a weekend-only car insurance policy by driving during the week without the insurer’s knowledge. This, understandably, makes insurance companies uneasy.

Most car insurance companies offer six-month and twelve-month auto policies only. There are a select few insurance carriers that claim to offer shorter terms, but few that would provide weekend-only insurance coverage.

Nevertheless it might be worthwhile checking with a potential vendor whether they offer or are willing to craft say a one-month policy as a starting place for drivers looking for temporary car insurance coverage.

Pay-per-mile car insurance companies

low-mileage discounts, pay-per-mile car insurance and usage-based insurance.

If you’re a low-mileage, weekend-only, or infrequent driver, pay-as-you-go car insurance is worth considering. These usage-based policies, which rely on telematic devices to track mileage, can reduce your premiums significantly if you don’t drive your car daily.

While the programs vary by company and depend on local availability, telematics use your mileage and driving behaviors as a way to price your premium. The more carefully and less frequently you drive, the cheaper your premium will be.

Low-mileage Insurance Policy

With low-mileage car insurance, you can save money for driving less. That’s because you’re less likely to get into an accident and cost the insurance company money if you don’t drive as much as other policyholders.

Low-mileage Car Insurance Policy

If you’re looking for cheap car insurance, there are two types of low mileage auto insurance policies worth considering:

• Low-mileage Discount: This discount offers reduced rates for those who drive fewer miles. According to the Federal Highway Administration, drivers put about 13,500 miles on their cars per year on average. Companies will seek to offer low mileage discount for people who drove less than 7,500 -8000 miles per year (translating to 21 to 22 miles per day).
• Pay-per-mile Insurance: Several car insurance companies offer pay-per-mile insurance policies that track your mileage and determine your rate based on how many miles you’ve driven. With these programs, your rate is tied directly to your mileage. These programs usually include a base rate and a per-mile rate each month. Programs track your mileage with a plug-in device or mobile app.                                                                                                                                                                      Pay-per-mile programs also set a maximum number of billable miles per day, which means you can take a road trip without worrying about a $1,000 insurance bill.

Car-share companies for occasional drivers

Car-share companies can provide a great option for those who don’t need a car often enough to warrant owning one. Costs are often far more reasonable than standard car rental companies as well.

Car-sharing companies typically provide optional insurance coverage while you use one of their vehicles. If chosen, this provides any minimum levels of state-required coverages such as personal injury protection or liability insurance as well as physical damage coverage that protects the vehicle. Each of them has different guidelines on how they handle a car damaged while in use.

Customers are typically required to pay a damage fee if they are responsible for damage to the vehicle. You may also be able to add a damage fee waiver as well that can reduce or remove this fee entirely. If your own car insurance covers your use of rental cars, then you may not need their protection packages.