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How does mileage affect insurance rates?

Question: Is auto insurance cheaper if your vehicle is used for pleasure rather than for work?

Answer: Some insurance companies will take into consideration the number of miles the vehicle is driven annually and whether or not it is used to drive to and from work or strictly for pleasure. If you use your car for pleasure, this means that you are typically driving for fun, with no regular commuting or business use. Typically putting less miles on a car will qualify you for low mileage insurance discounts.

If you are not just using your car for commuting but actually use it for work purposes such as you deliver items using your vehicle as the transportation then normally a personal auto insurance policy would not cover this and you would be required to get a business use or commercial policy. Using your car for work in this manner instead of personal or pleasure reasons would usually increase your cost for car insurance since you need a business policy instead of a personal one.


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1 Responses to "How does mileage affect insurance rates?"
  1. Anonymous

    If pleasure use is defined by annual milage how many miles can I drive a year and still be considered pleasure use ? Thanks.