Auto Liability Insurance for Under 5000 Miles a Year
Every state in America requires residents who drive a vehicle to take auto liability insurance. Insurance companies offer a variety of products depending on your eligibility and affordability. Many of us use our cars to full capacity while some of us drive less than even 5000 miles a year. Those who do not use their car much find it unnecessary spending a lot on auto insurance. Auto liability insurance for under 5000 miles a year is a blessing in disguise as this type of policy is entirely usage based. In fact, this kind of insurance is referred to as pay-as-you-drive or pay-by-the-mile auto insurance.
This insurance is good for our environment as well as for our wallets. There are various options on usage based insurance offered by different companies.
A new insurance program offered by GMAC is the low mileage discount program for customers of OnStar. As you approach them for low mileage insurance policies, you are required to produce vehicle diagnostic reports based on which the mileage on your vehicle is confirmed. The company offers up to 39% discount for vehicle owners who drive less than 5000 miles a year.
MyRateProgram is another Auto liability insurance for under 5000 miles a year. This program is developed and offered by Progressive Insurance. The car’s diagnostic port OnBoard is plugged into by the on-board telematic device instead of the OnStar. Your premium rate during renewal is worked out based on the data sent by this wireless device on how much, when and how you drive your car. This program is offered in states such as Minnesota, Michigan, Louisiana, Kentucky, Alabama, Oregon, New Jersey and Maryland.
Pay-by-the-mile insurance is also offered by another auto insurance company called MileMeter. This company sets its policy rates depending on the report issued by the customer and does not use any tracking device for checking mileage. They just receive readings on the odometer from registration databases, maintenance and vehicle emission.
Cost of policies is offered in cents per mile by this company. Here it is possible to pay in full and purchase six month coverage for 1000 to 6000 miles. You can purchase more miles if necessary after the completion of the six month period. This policy is on offer in Texas. MileMeter does not take your credit scoring into account and therefore do not ask for your social security number to give you a quote.
If you are one of those who do not drive around much, then take your time shopping for the best auto liability insurance for under 5000 miles a year. You can select uninsured/underinsured coverage and maximum liability coverage and comprehensive collision coverage with $500 deductible for a six month or one year term.
On our website you can find details of all insurance companies offering auto liability insurance for under 5000 miles a year. You can compare their quotes and choose the best provider offering a good deal based on your budget and specific requirements.