Auto insurance premiums in many instances are, in part, set by the information you provide about what purposes you drive for, how often you drive (i.e. to work or to school), and how far you drive. This is normally just one part of the rating factors that an insurance carrier will take into account.

So while some states use or are contemplating mileage based insurance not all states may include this as a rating factor or an insurance company may or may not use the mileage put on a vehicle each day or week as part of their rating calculations.

In general it would be less costly if you drive fewer miles to school or work, so 0 to 3 miles would be considered better than driving 15 miles. Insurers usually charge more if you drive further to work or school. Some carriers don't use it as a rating factor, others set the threshold at 3 miles, others set it at 4 and others set it at 15. So there is not strict rule, it may or may not go into factoring your rate. Some carriers use it just to validate the annual miles driven.

So if you drive to work or school but do not drive as far as you once did you should notify your insurance agent to see if you may be due a rate reduction. If you are now car pooling or take the bus to work see if a rate reduction would exist for your car insurance premium. While you will still be classified as driving to work or school, you may fall into a lower price category, the general savings will average about 1 percent.

If you stopped driving to work or school and use your vehicle for pleasure only, you also might be eligible for savings. Many people work from home, telecommute, so you can see if rather than being rated for as a drive to business or school vehicle, your car will now be rated as one used for pleasure with a lower rate.

Policyholders can call their insurance agent to determine if a change in their driving behavior qualifies them for a lower rate. For example if you now drive 0 – 3 miles to work instead of 15 miles or more that you previous drove.

You may want to shop around for affordable car insurance rates to see if there are lower rates for few miles driven or other available discounts.