Car insurance premiums are calculated based on your driving history, the type of car that you drive, your credit history and even your marital status. Along with all of these factors, your car insurance rates are also affected by how you use your car. Your car insurance rates will be lower on a car that is purely used for pleasure than on a car that you use to commute to work on a daily basis.

Why Mileage Matters

Insurance premiums are based on risk, or the likelihood that you will file a claim. The greater your average risk, the higher your premiums. Insurance companies ask how you use your car, how far you commute and how many miles you drive each year to help determine your premiums. Your mileage matters, because your chances of being involved in an accident increase with the amount of time that you spend on the road.