How Kilometres Driven Per Year Affect Your Car Insurance?
Your mileage will affect your car insurance. Knowing your mileage -- how many kilometres you drive daily, weekly, or yearly -- can help you save money on car insurance.
Your average number of kilometres driven per year depends on factors like whether you drive to work, how often, how long your commute is, and how many kilometres you drive on your days off.
Talk to your Western insurance expert about how your mileage can affect your car insurance and how you can get the best rates.
Natural Resources Canada has estimated that Canadians drive an average of about 15,000 kilometres annually.
How to estimate average kilometres driven per year
You can figure out your average number of kilometres driven yearly by following these steps:
- Figure out your work commute by multiplying the number of kilometres by 2.
- For example, if your commute is 40 kilometres and you work five days a week, you would multiply 40 by two, then again by five. This comes out to 400 km per week.
- Figure out the number of kilometres you drive on weekends and multiply this by 104 (the approximate number of weekend days per year). Take into account vacations and what you do in the winter and in the summer.
How kilometres driven per year affect car insurance
Insurers ask about your annual mileage when determining your car insurance rates. They will need to know how many kilometres you drive to work, and your average number of kilometres driven per year on weekends. Make sure you give an accurate number and let your insurer know if a recent change in employment or lifestyle means you will be driving more or less. Your vehicle identification number (VIN) is recorded when you take your car to the shop for repairs and your insurer could request your records to assess the number of kilometres you drive per year.
The more kilometres you drive per year on average, the higher your car insurance rates will be. You can get a more accurate count of the kilometres you drive per year by having usage-based insurance. This means that the number of kilometres you drive will be monitored with an app and reflected in your car insurance rates.
Talk to your Western insurance expert about your car mileage and how it affects your rate.
Low mileage can mean discounts
If you don’t drive much, you could get a discount. Some insurers define low-mileage drivers as people who drive fewer than 10,000 kilometres a year. If you do not drive much, you may fall into this category and get better rates based on your kilometres driven per year.
Typically, if you are a low-mileage driver, you benefit from lower insurance rates because premiums are based on risk. The less you drive your car, the lower the risk of you getting into an accident and needing to make a claim.
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