Breaking Down the Cost of Car Insurance
If you are shopping for cheaper insurance coverage for your car, consider what it costs you per mile?
How to figure this out. Write down how much you pay per year for car insurance. For example, let’s assume a yearly premium of $1,200.
Now, divide that by how many miles you drive per year. Let’s assume you drive 12,000 miles per year.
Dividing $1,200 by 12,000 = $0.10 (ten cents per mile).
Knowing your fully loaded cost per mile (payment + maintencance + insurance) for a vehicle is useful when you are considering buying a car and evaluating the costs.
When comparing quotes from different insurance companies, make sure the coverage amounts match exactly, so you are comparing apples to apples as they say.
Related Information
Best Ways To Save Money On Your Auto Ins
1. Drive Less for and get a discount
Some carriers will discount your premium with a low-mileage discount if you drive less than 7,500 miles per year. Also ask your agent if you can receive a commuter discount for using public transportation.
Get the answers you need.
Collision Coverage:
Collision Coverage covers damage to your vehicle if your car hits or is hit by another vehicle, less your deductible.