Reader question:

I work at home doing customer service over the phone, and I have a car but only use it to go out and have fun. I want to cancel my insurance policy because of mileage low car insurance rates just aren’t out there. Should I?

Abram

Great question, Abram.

You should never cancel your car insurance policy unless you intend to immediately get a policy with a different car insurance company. I definitely understand where you are coming from, as one of my cars is broken down and has been for about a month, so it’s just sitting there while I’ve already made two premium payments for it during that time. It’s so frustrating to have to pay car insurance for a vehicle you are hardly using or not using at all, because seriously, how are you going to crash it?

However, there is the reason that it is required by law in all states but New Hampshire, and that you never know when you might get checked in on. Another reason is that even though you hardly use your car, you can still get into an accident. In fact, it’s more likely if you are only using it to go out on the town with friends. The more people in a car the more likely you are to get into a car accident, especially one involving fatality or injury, so full protection is a must.

If you really want to save money on your car insurance, you can look into getting a discount for your mileage low car insurance rates. Most car insurance companies have an option for a low mileage discount, and normally the amount of miles you have to use to qualify is very low indeed. Most companies put it at around five thousand miles tops. If you drive under this amount every year, then you could get five to fifteen percent discounts on your car insurance rates.

Cheers,

Fashun Guadarrama.