Do You Need Insurance for a Car You Barely Drive?

Over the past two years, the COVID-19 pandemic has changed how most people behave and live. From how we work and grocery shop to how we interact with other people, the pandemic has drastically changed the landscape. Another side effect of the last two years’ events is that many people are driving less. With remote work and virtual education, many people stay home for longer periods. If you are driving less frequently these days, you have undoubtedly seen a change in your vehicle’s gas and maintenance expenditures. Unfortunately, you are probably still paying full price for your insurance coverage. The average driver in the United States pays around $140 a month for full coverage auto insurance.

No matter how much you drive, you must have vehicle insurance in most places. The majority of states mandate that all drivers carry a minimum amount of liability insurance for any vehicle on the road. If you have leased or financed your vehicle, the financial institution will also require you to carry full coverage insurance. However, if you no longer drive your car as often as you used to, there may be other options to help lower your rates.

If you are looking to lower your rates for car insurance for a car you don’t drive that often, you may need to look beyond traditional insurance products. Until recently, low mileage drivers had few options for lower insurance rates. Thanks to broader changes in driving habits and new insurance products, drivers have more coverage options today. Let’s take a look at insuring a car that you barely drive.

Pay-Per-Mile Car Insurance


A newer insurance product that is gaining popularity today is pay-per-mile car insurance. Also known as usage-based insurance, the benefit of this type of coverage is that drivers pay rates based on driving habits. These plans essentially allow drivers to pay for the insurance they use. Weighing the same factors as they do for standard insurance rates, insurance companies will impose a base rate for this insurance and charge an additional fee per mile. Pay-per-mile car insurance usually offers the same comprehensive and liability coverage as traditional policies.

When you sign up for this type of policy, insurers will begin tracking your driving through a mobile app and telematics device. The device plugs into your car and monitors your driving. The mobile app will allow you to track your mileage and fees. A driver with a base rate of $29 a month and pays $.05 per mile will pay $39 for the month if they drive 200 miles. In this scenario, the monthly cost for insurance is significantly lower than a traditional coverage. How much you pay will depend on your driving record, location, age, and several other factors.

Low Mileage Discounts


Car insurance companies often offer discounts for various reasons. Maintaining a good driving record and having certain safety equipment in your vehicle are some of the more popular insurance discounts. Aside from this, however, you might be able to reduce your insurance rates as a low mileage driver. If you find that you are driving 6,000 miles or less each year, your insurance company could place you into a lower mileage bracket and charge less for coverage. You can speak to your insurer to determine what discounts or rate reductions are offered for low mileage drivers.

Comparison Shopping


Another way to find lower, more affordable insurance rates is to shop around for several quotes. Online insurance comparison tools allow you to enter basic personal information and receive multiple quotes in minutes. You will be able to compare rates, policies, and coverage options from several insurance companies. No matter how many miles you drive each month, you can find lower insurance rates by comparison shopping.

If you have a car that you barely drive, you will probably still need basic liability insurance, depending on where you live. Shopping around for different insurance products and rates will help you find the best policy for your needs.