Car Insurance for Low Mileage Drivers

In Ontario, there are several car insurance companies that offer discounts for low mileage drivers. Here are a few examples:

1. Desjardins Insurance – Desjardins offers a “Usage-Based Insurance” program, which includes a low mileage discount. This program uses a telematics device to track the driver’s mileage and other driving habits, and adjusts the insurance premium accordingly. Drivers who drive less than 9,000 km per year can save up to 15% on their insurance premium.
2. Belairdirect – Belairdirect offers a “Snapshot” program, which also uses a telematics device to track the driver’s mileage and driving habits. Drivers who drive less than 8,000 km per year can save up to 15% on their insurance premium.
3. Intact Insurance – Intact offers a “My Driving Discount” program, which includes a low mileage discount. Drivers who drive less than 9,000 km per year can save up to 15% on their insurance premium.
4. CAA Insurance – CAA offers a “MyPace” program, which is designed for low mileage drivers. This program allows drivers to pay for their insurance based on the number of kilometres they drive, with rates starting as low as $9 per month.

The amount of the discount may vary depending on the insurance company and the driver’s specific situation. Additionally, some insurance companies may require drivers to install a telematics device in their car to track their mileage and driving habits in order to qualify for the low mileage discount.

What is Low Mileage Insurance?

Low mileage insurance is a type of car insurance that is designed for drivers who do not drive their car frequently. Typically, low mileage insurance offers lower premiums to drivers who do not put many miles on their car each year. The exact definition of “low mileage” may vary by insurance company, but it generally means driving less than a certain number of miles each year, such as 7,500 miles.

Low mileage insurance is beneficial for drivers who drive their car infrequently or for short distances, such as people who work from home or only use their car for local errands. Since these drivers spend less time on the road, they have a lower risk of being involved in an accident, and may be eligible for lower insurance premiums as a result.

Some insurance companies offer usage-based insurance programs, which use a telematics device to track the driver’s mileage and driving habits. These programs can offer additional discounts for low mileage drivers, as well as for safe driving habits such as avoiding sudden stops or excessive speed.

Overall, low mileage insurance can be a good option for drivers who do not put many miles on their car each year, as it can help them save money on their insurance premiums.

How Much Does Mileage Affect Car Insurance?

In Ontario, mileage can have a significant impact on car insurance premiums. The more you drive, the higher your risk of being involved in an accident, which can result in higher insurance premiums.

Insurance companies in Ontario typically use mileage as one of the factors to calculate car insurance premiums. The amount of impact that mileage has on insurance premiums can vary depending on the insurance company, but generally, the more miles you drive each year, the higher your insurance premiums will be.

For example, if you drive 20,000 km per year, you may be considered a higher risk and may have to pay a higher insurance premium than someone who only drives 5,000 km per year.

On the other hand, some insurance companies offer discounts for low mileage drivers, as they are considered to be lower risk. These discounts can range from 5% to 15% depending on the insurance company and the specific program they offer.

Using Vehicles for Road Trips

Using vehicles for road trips can be a fun and exciting way to explore new places and create lasting memories. However, it’s important to keep in mind some key factors to ensure a safe and enjoyable trip.

1. Plan ahead: Before hitting the road, plan out your route and schedule to make the most of your trip. This includes planning your rest stops, meal breaks, and overnight stays if necessary. Make sure you have plenty of time to enjoy the journey and avoid rushing or feeling stressed.
2. Check your vehicle: Before embarking on a road trip, make sure your vehicle is in good condition. This includes checking the oil and other fluids, tire pressure, brakes, and other important components. Consider taking your vehicle to a mechanic for a tune-up before your trip.
3. Pack appropriately: Make sure you pack everything you need for your trip, including snacks, water, first aid kit, and any other essentials. Depending on the length of your trip, you may also need to pack clothing, toiletries, and other items.
4. Drive safely: Always prioritize safety while on the road. This includes wearing your seatbelt, obeying traffic laws, avoiding distractions such as texting while driving, and taking breaks when you’re feeling tired.
5. Be prepared for emergencies: In case of an emergency, make sure you have a roadside assistance plan or know how to contact a tow truck. Keep a spare tire, jumper cables, and other emergency supplies in your vehicle.

Overall, road trips can be a great way to experience new places and create memories, but it’s important to plan ahead, prioritize safety, and be prepared for unexpected situations.

Misleading Mileage Can Be More Costly

Lying to your car insurance company about your mileage in Ontario is not recommended, and it is considered insurance fraud. Insurance companies use mileage as one of the factors to calculate your car insurance premium. If you lie about your mileage to get a lower premium, you could face serious consequences, including:

1. Cancellation of your policy: If your insurance company discovers that you lied about your mileage, they may cancel your policy. This could leave you without any insurance coverage and make it difficult to get insurance in the future.
2. Denial of claims: If you are involved in an accident and your insurance company discovers that you lied about your mileage, they may deny your claim. This means that you would be responsible for paying for the damages out of pocket.
3. Legal consequences: Lying to your insurance company about your mileage is considered insurance fraud, which is a criminal offense in Ontario. If you are caught, you could face legal consequences, including fines and even jail time.

In summary, it is not advisable to lie to your car insurance company about your mileage in Ontario. It’s important to be honest and accurate when providing information to your insurance company to avoid any potential issues in the future. If you’re looking to save money on car insurance, consider exploring legitimate ways to lower your premiums, such as taking advantage of low mileage discounts or shopping around for competitive rates.

Is Insurance Cheaper If You drive Less?

In general, insurance can be cheaper if you drive less. Many insurance companies offer low mileage discounts for drivers who drive less than a certain number of miles per year, typically around 12,000 kilometers per year. The amount of the discount may vary depending on the insurance company and the driver’s specific situation, but it can range from 5% to 15% off the premium.

Here are some example costs for different profile drivers in Toronto based on their estimated annual mileage:

1. Driver A: Commutes to work every day and drives an estimated 15,000 km per year. Their insurance premium might be around $1,500 per year.
2. Driver B: Works from home and only drives an estimated 5,000 km per year. They qualify for a low mileage discount of 10%, so their insurance premium might be around $1,350 per year, saving them $150 annually.
3. Driver C: Uses their car for occasional weekend trips and drives an estimated 8,000 km per year. They also qualify for a low mileage discount of 5%, so their insurance premium might be around $1,425 per year, saving them $75 annually.

The exact amount of the discount and the resulting insurance premium will depend on many factors besides just mileage, such as the driver’s age, gender, driving record, and the type of car they drive. Additionally, some insurance companies may require drivers to install a telematics device in their car to track their mileage and driving habits in order to qualify for the low mileage discount.

Why Do Insurance Companies Offer Low Mileage Discounts?

Insurance companies offer low mileage discounts to encourage safe driving behavior and reduce their risk of insuring high-risk drivers. When a driver drives less, they are less likely to be involved in accidents, which reduces the insurance company’s risk of having to pay out claims.

By offering low mileage discounts, insurance companies can attract safer drivers and retain existing customers who drive less. This helps insurance companies to maintain a lower risk pool of insured drivers, which can result in lower overall costs for the insurance company and potentially lower premiums for their customers.

Additionally, offering low mileage discounts can be a competitive advantage for insurance companies, as it allows them to differentiate themselves from other companies and attract new customers who are looking for ways to save money on their car insurance.

Telematics devices, which are used to track a driver’s mileage and driving habits, have made it easier for insurance companies to offer low mileage discounts. By tracking a driver’s mileage and driving behavior, insurance companies can better understand their risk and offer more personalized insurance rates.

What Is Pay as You Go Insurance?

Pay as you go insurance, also known as usage-based insurance, is a type of car insurance where the insurance premium is based on how much the driver actually uses their car. Instead of paying a fixed premium each month or year, the driver pays a variable amount based on their actual mileage and driving habits.

Usage-based insurance typically uses telematics devices installed in the car to track the driver’s mileage, speed, acceleration, and braking habits. Insurance companies can then use this data to calculate a personalized insurance premium based on the driver’s risk profile.

Here are some examples of car insurance companies that offer usage-based or pay as you go insurance in Ontario:

1. Intact Insurance – Offers a “My Driving Discount” program that uses a telematics device to track the driver’s mileage and driving habits. Drivers can save up to 25% on their insurance premium based on their driving behavior.
2. Desjardins Insurance – Offers a “Usage-Based Insurance” program that uses a telematics device to track the driver’s mileage and driving habits. Drivers who drive less than 9,000 km per year can save up to 15% on their insurance premium.
3. CAA Insurance – Offers a “MyPace” program, which allows drivers to pay for insurance based on the number of kilometers they drive. Rates start as low as $9 per month.
4. Allstate Insurance – Offers a “Drivewise” program that uses a telematics device to track the driver’s mileage and driving habits. Drivers can earn up to 30% off their insurance premium based on their driving behavior.
5. Belairdirect – Offers a “Snapshot” program that uses a telematics device to track the driver’s mileage and driving habits. Drivers who drive less than 8,000 km per year can save up to 15% on their insurance premium.

It’s important to note that the exact terms and conditions of pay as you go insurance may vary depending on the insurance company and the specific program they offer. Drivers should carefully review the program details and pricing before signing up for any pay as you go insurance program.