If you call an insurance company for a quote for auto coverage, the agent will ask you a lot of questions, including how many miles you drive on average. Why do agents ask this question? Well, the reason is that many companies offer discounts to people who don't drive many miles. If you are wondering if you would qualify for this and why insurance companies offer it, here are a few things you should know.

Why insurance companies give discounts for low mileage

When an insurance company quotes a policy for you, they will take into consideration many different factors. The bottom line is that they are trying to determine your risk level from the factors they evaluate. Because of this, they will consider how much you drive. A person who drives 1,000 miles a week is much more likely to encounter an accident than a person who drives 100 miles a week. This is just common sense. The more time you spend on the road, the greater the chance is that you will encounter a collision. Therefore, insurance companies often give discounts to people who drive very little, as the risk is much lower for them.

How to qualify for this discount

To qualify for a discount like this, you would need to contact an insurance company and ask them about their guidelines for low-mileage discounts. Some companies may give a discount for anyone who drives less than 12,000 miles a year, but other companies have different standards that may be higher or lower than this. If you meet the guidelines, you qualify for the discount.

Consider a pay-per-mile policy

If you drive very little and really want to save money based on this one factor, you could consider looking for a pay-per-mile policy. This is the type of policy that allows you to only pay for the insurance you need, and it is often charged as a fee per mile. When you have this type of policy, you have control over how much you pay, as it is based on the number of miles you drive. This option is great for a person who rarely drives.

You can save money on your auto insurance if you qualify for a discount like this or by qualifying for other types of discounts. Talk to an agent today to learn more about auto insurance and the discounts you might be eligible for.