Optimizing Insurance for Occasional Use Vehicles: A Guide for Low-Mileage Car Owners
For car enthusiasts who only log a few thousand miles annually, finding the right auto insurance coverage can be a challenge. If you own a vehicle that spends most of its time parked—like a cherished classic or a weekend cruiser—you might be overpaying for coverage designed for daily drivers.
Case Study: Protecting a Rarely-Used Vehicle
Consider a 2017 Mini Cooper S manual transmission, which owner rarely drives. This vehicle mostly remains in the garage, with occasional trips to run errands or enjoy leisurely drives. The owner reports driving less than 3,000 miles per year and typically spends around $175 monthly on insurance for this car.
While the current policy with State Farm offers satisfactory coverage for their home and daily drivers, the premium on this infrequently-used vehicle feels costly. Naturally, this situation prompts the question: Are there better options for insuring low-mileage or recreational cars?
Strategies to Reduce Coverage Costs
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Review Usage-Based or Low-Mileage Policies
Many insurers now offer plans tailored for occasional drivers. These often feature lower premiums because they recognize the reduced risk associated with limited driving. -
Consider Specialized Classic or Recreational Vehicle Policies
If your car is considered a collector’s item or a fun weekend vehicle, specialized insurance providers might offer more affordable coverage that aligns with your usage patterns. -
Explore Multi-Policy Discounts
Since the policyholder already maintains home and daily auto coverage with State Farm, inquire about bundling discounts. Sometimes, consolidating policies can result in significant savings. -
Compare Quotes from Different Insurers
Shopping around with various providers can uncover more competitive rates for low-mileage coverage. Insurers like Hagerty, Grundy, or other specialty providers cater to infrequently driven cars. -
Adjust Coverage Levels
Reducing comprehensive or collision coverage on a vehicle that isn’t driven often might be a practical option to lower premiums—just be mindful of the potential risks.
Additional Considerations
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Location Changes: Moving from San Antonio, Texas, to Tennessee later this year may affect your insurance costs. Ensure that you update your policy accordingly and explore regional discounts or requirements.
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Vehicle Storage: Keep detailed records of your vehicle’s storage conditions, as these can sometimes influence insurance premiums.
Final Thoughts
Owning a low-mileage or recreational vehicle
