Did you know that you could be eligible for a discount of up to 45 percent if you drive less than 2,000 miles per year? Last year, two California auto insurance companies — State Farm and Auto Club of Southern California rolled out new incentives for people who drive less.
How Do People Get Started?
State Farm auto insurance clients can visit a licensed dealer to have their odometers read or they may submit their mileage electronically if they have the OnStar system. The Auto Club of Southern California offers their clients the option of installing an automatic mileage transmission device.
How Does The Program Work?
For the State Farm program, drivers will receive a discount for driving 2,000 miles or less, with gradual price increases for every 500 miles driven. Consumer advocates say this CA auto insurance incentive saves drivers a substantial amount of money if they can decrease the amount they drive by just 500 miles. The Auto Club uses four price brackets for 2,500 miles up to 10,000 and seven steps of 5,000 miles after that, which they say “will not penalize drivers who occasionally run up their mileage with long vacation trips.”
How Much Can You Save On California Auto Insurance?
State Farm drivers may save up to 45 percent off their regular rates per year. Auto Club drivers could save 1 – 10.5 percent, which translates to about $68 per vehicle, per year.
What Is The Significance Of This Program?
Environmentalists love the idea of a low mileage auto insurance incentive because they feel that will encourage more carpoolers, train riders or people who will think twice about making unnecessary trips by car. According to State Farm, about 25 percent of their 3.3 million policyholders in California will be eligible for the program.
New programs are coming out all the time, which is why it’s a good idea to periodically surf auto insurance quotes for the best deals.