If you don’t drive your car on a daily basis, you may be able to reduce your auto insurance premium with an infrequent driver discount or alternative car insurance package. Every car insurance provider has different policies and options for drivers who tend to use their car far less than the average, and for those who only have a vehicle for leisure purposes. Researching different options and inquiring about temporary insurance plans can help you reduce insurance costs. Insurance for infrequent drivers can also ensure the driver isn’t buying insurance coverage they will never actually need.
Here are some of the best auto insurance options for infrequent drivers:
Pay-As-You-Go Insurance
Some insurance companies offer a discounted insurance plan in the form of a pay-as-you-go or pay-as-you-drive program. If you purchase this type of insurance policy, you will need to submit your monthly odometer reading and report mileage on a regular basis to qualify for this program. You will also have to agree to limit your mileage each month. Pay-as-you-drive programs offer more individualized coverage options and may be a great match for low-risk drivers who only use a certain vehicle on occasion. In most cases, the total amount you end up paying over the course of the year will be much less than a standard insurance policy.
Commuter Discounts
If you can prove that you are using public transit services each month, you may be eligible for some type of commuter discount, or public transit commuter discounts. Some auto insurance providers extend a discount of up to 10 percent or more off your insurance premium if you can provide evidence of purchasing several months of commuter passes and prove that you aren’t using your vehicle to go to work or school. If you rely on public transportation more than your own vehicle, you could reduce your insurance premium with this discount.
Temporary Car Insurance
When you know you are only going to be driving your car for a month or a few weeks, you can purchase temporary car insurance instead of a standard insurance policy. This can be a good match for people who have a car in storage at a vacation home destination and only plan on driving the vehicle for a few days or weeks in the year. Temporary car insurance works just like regular car insurance except coverage is limited to a specific set of dates. You can even purchase add-ons such as roadside assistance and other services over the course of coverage.
Sources:
Edmunds.com – Pay As You Drive Insurance Goes into High Gear
Travelers of Massachusetts – Auto Insurance
ZeroAutoInsurance.com – Temporary Car Insurance