Low milage insurance

i spoke with 2 agents, and they give little incentive for low mileage any more. there is a slight reduction with one agent if you have an appliance in auto, but if you drive 5,000 a yr, you will pay similar to the person driving 50,000 a year One agent said that they are trying to recoup pandemic losses. (not sure what car insurance has to do with that, as no one drove much back than) my dad said he had usaa, but company cannot find his record They offer the best insurance and have a policy based on mileage. I also have an excellent credit score, but fees are going up by 20 to 25% this year!

I have 62K on a 2008 RAV [16 years old] no tickets, no claims, and my insurance continues to go up.

I cannot understand how the pandemic changed prices, when people drove less during the pandemic! I was also told that I cannot get mileage based insurance as they need the money for marketing, and I knew that when I started looking my mailbox became busy with offers. They know how much you are paying and they can try to match that rate. 800 credit score does not matter, as we are paying for the losers that they sell insurance to, probably for similar rates!

I just paid my 6-month USAA car insurance bill last month for our 2022 Volvo BEV and a 2017 Santa Fe. Both are driven less than 10k miles a year.

It was $563.02 last October and this spring it was $554.32 … no increase.

Interesting. do you have full coverage?

I would not think that an increase in insurance rates is for anything more than:

  1. Profit (like whe nthe places raised prices during COVID and now are dropping them because people stopped buying things). [McDonalds for example, kept bumping prices up and lost lots of buysiness]

  2. Insurance companys may pay for things like advertising and so on, but mostly they have t oincrease salaries of the workers

  3. Primarily I think the increaes are to what they have to pay to FIX a car. If those parts and labor increase in price the insurance company will have to pass those anticipated costs on in higher premiums.

That is my take on it.

Bingo that’s #1

Number 3 would include the cost of the all electric cars blowing up and stalling out on highways. I heard that the parts in those are much more than gasoline cars! And can you recycle those lithium batteries? What do they do after they get worn?

Yes, on both cars.

I would add that the incidence of totaled cars because of flooding claims has an effect car insurance providers as well.

There’s been a lot of that going on lately:



I’m good on the internet and I can’t find anything to substantiate that claim. I did find a few fact checks refuting similar claims.

When you have a vehicle that has to have an on-board fire in order to operate and a requirement to carry highly flammable fuel to feed that fire, stuff happens. :slightly_smiling_face: :fire:

The reason you hear about BEVs catching fire is because #1, they are hard to extinguish and, #2, they are uncommon. It’s sort of a “man bites dog” news item.

There are online services where you can receive quotes from several carriers. Also consider going to a broker to find the best rate instead of your having to do all the work. Bunding also reduces rates. I bundle home, auto and umbrella.

We shop for auto insurance about every 5 years. This year I got quotes from 8 insurance companies. 2 autos, 800+ credit score, no accidents in 20 years nor tickets. Less than 10,000 miles, combined, for both cars. Only 2 offered their “tracking service” but couldn’t guarantee a discount for low miles.

I worked in the insurance industry for many years. I’m not going to try to convince you that they are nice guys, but it’s very unlikely that “profit “ stuffing has anything to do with the rates. There are 10k insurance companies out there. If you start making good money another company will swoop in to take your business. It’s run on statistical data of which there is tons of it out there. Things like Low Mileage programs are just marketing things. Sometimes they work and sometimes they don’t help bring more customers or help keep them. What drives most insurance companies is Survival. They operate on one of the smallest profit margins out there. Our rates had 5% profit built in, and 85% to pay future claims with. Inflation hits all people and businesses. The cost of vehicles has gone sky high, the cost of repair is even worse. Wages have gone up and the overall cost of doing business has. It’s no different than any other business. It’s just that it’s a necessity and those complaining probably haven’t had a claim. But have that $500k claim and then complain. How many individual policies with No claims do they have to sell to break even on that one claim? The whole principle of insurance is that you pay your own claims in time, otherwise it doesn’t work. If they have to pay out more than they take in, how do they survive? No business can. How do you make rates on a future event that you don’t know what could change in between? This sudden inflation was one of those changes and now we have to pay the Piper. That’s the survival side. Stay in business long enough to balance things out. Believe me, no insurance company can make excess profits very long. Ever look at the markup of a bottle of wine? But you can quit buying wine and you need insurance to sleep better at night. So, most of that insurance payment is for “Peace of mind.” Hey, don’t buy it!

Yes, that is similar to what I find. They do not chase after a person like me with a great credit score, but they sure do not turn me down. I would have expected a red carpet with my history. .
People who over use credit cards, and have low credit scores, drive many miles, and have fender benders, probably pay amounts similar to mine. I really believe I make up for their bad behavior.

If we got all the frequent offenders off the road completely, we would not have to pay for their bad behavior. In some countries, with great public transportation, driving is seen as a privilege, that has to be earned.
Thank you, and it totally makes sense, that eventually you have to pay for yours (and others) payouts.

The reason the insurance industry exists is because people will pay more to avoid a loss than they will pay to achieve a gain.

Insurance companies operate in that margin, and they make money doing it.

True, if they didn’t make money all of your problems are solved, there would be no insurance companies. I never said it wasn’t a business. Do you feel the same about grocery stores? They make money off of your very existence. That’s a poor argument.