Why do car insurance companies want to know how many miles I drive? How does that affect my premium?

32 Answers

Relevance
  • bobby
    Lv 6
    3 weeks ago

    They want to know if you drive it for work, school, or pleasure. If you drive over a certain number of miles daily, in their eyes, it is an increased risk for accident and  there is a small increase on your premium, nothing but an excuse to get more money out of you.

  • zipper
    Lv 6
    3 weeks ago

    The more you drive the more likely you are to have an accented, a little common sense LADY!

  • 4 weeks ago

    That's a good question, what do you think?

  • May
    Lv 5
    4 weeks ago

    The more miles you drive the greater the risk of an accident or a claim.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 4 weeks ago

    The more miles you drive, the greater is the risk you will eventually have an accident, so the premiums go up accordingly.

  • 4 weeks ago

    Simple, the more miles you drive, the higher the odds are you may have an incident.

  • 4 weeks ago

    To auto insurance companies, it's all about risk -- the risk that you will be involved in an accident and file a claim such that they have to pay out money. 

    If you drive lots of miles, there is a greater chance that you'll have an accident than if you only drive a few miles. If you drive in high-traffic areas rather than on country roads, there's a higher chance that you'll be involved in an accident. 

    If you are under 26 years old, statistics show that you have a higher chance of being in an accident. If you have a poor credit score, evidence shows that you are more likely to file a claim. 

    If you have speeding tickets, there is a higher risk of you causing an accident. And so on . . . . 

  • JetDoc
    Lv 7
    4 weeks ago

    The more miles you drive, the greater the chances that you will be involved in an accident. The insurance company will raise your rates based on estimated miles driven.

  • Eva
    Lv 7
    4 weeks ago

    The more miles you drive the higher your risk of accident, therefore your premium will be higher.

  • John
    Lv 7
    4 weeks ago

    Less risk if you spend less miles on the roads.

Still have questions? Get answers by asking now.