According to a new study, even as the segment of drivers usually has a smaller rate of filing insurance claims, it appears that motorists that don’t drive many miles annually are actually not given any incentive by the auto insurers.
When it comes to major auto insurance companies, only State Farm traditionally offered a discount to the low-mileage drivers if they only drove around 5,000 miles per year – which is around one third of the national average, said the research conducted by the Consumer Federation of America. “The failure of most large insurers to adequately reward low mileage especially harms lower income and older drivers because they drive the least,” commented Stephen Brobeck, CFA’s executive director. The study has been done using research conducted on a hypothetical 30-year-old single woman with a perfect driving record, with CFA asking for minimum state-required liability coverage in 10 cities around the country in a bid to see if the low mileage impacts in any way ad by how much the insurance rates.
Besides State Farm, which differentiated the same driver if it drove 20,000 miles or 5,000 miles per year, other insurers gave little to no discount for the less driving motorist. Numerous studies say that drivers with annual low mileage are more likely to have lower insurance claim rates. For example, an MIT study proved that motorists driving more than 30,000 miles annually are 60 percent more inclined to have an insurance claim, which is also typically 43 percent costlier than one filed by a driver logging just 10,000 miles a year.