Can I Get a Better Deal If I Don’t Use My Car Much?

However, if your circumstances change and you need to adjust your policy, then you could face problems in working out the exact number of miles you’ll need to be insured for.

Some drivers might believe that they can cut down on the cost of their insurance premiums if they don’t use their car as often as they usually do. There are options available for reduced mileage and pay as you drive schemes that can help you to achieve this, but they do need to be combined with a good appreciation of what insurance deals are currently available; this means comparing the market and seeing which specialist deals from insurers such as Hong Kong Directasia are best suited to your driving habits.


Usage based insurance, or pay as you drive, can be affected by how much you drive and where you’re going to be driving. More specific quotes can be found that reflect the kind of driving that you do, and can be calculated from your odometer’s mileage, as well as from GPS data. Telematics insurance, for example, involves recording your driving habits and uploading information to an insurance company to work out a more precise quote.


You can also look into insurance policies that reward you for taking on less risk by using your car less often than other drivers. A low mileage of between an average of 7,500 and 15,000 miles tends to be the baseline that insurance companies work for, and provides a lot of scope for drivers that know they won’t be using their vehicle as much as previous years; this might be due to an effort to use public transport more often, or as the result of insurance being on a second car that’s not used very much.


Returning to telematics insurance, it’s possible to build up a policy that offers a much more detailed record of how and where you drive. The black box fitted to your car can provide you with a way of proving that you’re a good driver, and can result in an insurance company adjusting your premiums if you’ve previously been hit by rises as the result of being in a particularly at-risk insurance group. You might also benefit from telematics and limited mileage schemes if you’re only driving during the day and away from busy roads.


There are indications, then, that by limiting your car usage and your mileage, you can make some savings. However, with pay as you drive insurance you have to be prepared to stick to pre-approved limits, and will have to look for insurance companies that have clear terms and conditions for what counts as a cost saving. Making sure that you understand what a limited mileage policy means before you sign up to one is consequently crucial.


In the same context, it’s worth weighing up whether reduced mileage or pay as you go car insurance is going to be right for you in the long term; if you know, for example, that you’re only going to be driving a certain amount of miles over the next year, then you can likely save money on your policy. However, if your circumstances change and you need to adjust your policy, then you could face problems in working out the exact number of miles you’ll need to be insured for.


Author Bio :- Tom Warren is a freelance blogger who frequently writes about car insurance. He recommends checking out the different insurance deals available at Hong Kong Directasia. He also blogs about motorcycle insurance.

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