Car Insurance for Under 5000 Miles a Year

Insurance companies together with state representatives are constantly searching for ways to ensure that everybody who drives a car on U.S. roads has a valid insurance policy that would cover the claims after an accident. Moreover, it is in everybody's best interest that people aren't overbilled – i.e. nobody has to buy insurance they don't need. Such is the case of the so-called "limited use" or "restricted auto insurance", a policy made for those who drive their cars for less than 5,000 miles a year.

Such a policy is more than perfect for occasional drivers. If you don't use your car to commute to work or school and only take it for a ride on weekends or once a year on vacations, the limited use auto insurance is a bare-bone package that comes with the minimum legal requirements at a very affordable price. Compared to an "unmetered" policy, it can be even 40% cheaper. Let us have a look at some characteristics and eligibility criteria.

Not more than one driver

If your whole household uses the car, then you won't be able to apply for this discounted policy. It only holds for one vehicle and one driver, so if you plan on having your siblings behind the wheel you should go for the standard liability insurance. Of course, nobody says you can't lend your car to a driver who is fully covered under some other form of insurance and will fix your car in case of an accident, it's just your insurer will deny the claim.

Vacation or sports car

If you own more than a car and you have one you don't drive for more than 5,000 miles a year, you may apply for such a policy. Such may be the case for a sports car you drive for pleasure or a family van you use on vacations. This could even hold if you only have one car and use public transportation to get to work or school.

Where is it parked?

One of the first questions the insurance agent will ask is where you keep your car. If you apply for such a discounted policy you should have a safe parking place for your car. Don't leave it on the street, as the risks of being vandalized or damaged by sun exposure are high. If you keep it in a garage or at least some enclosed area, like your own yard, then you are on the safe side.

All in all, if you live alone or are the only driver in your household and have a car you don't frequently use, contact your insurer and ask for a limited use policy. If you drive less than 5,000 miles a year, you may be eligible for a significant discount!