Car Insurance Questions

[nph220]

I currently bike my round-trip commute of 1 mile. My job is in consulting, which necessitates driving my personal vehicle a variable amount. Most weeks I don't drive at all, others ~2-3 times (total mileage is difficult to predict). After a recent move, I changed the round-trip mileage on my current policy from 25 miles per day to 1 mile per day. This did not change the cost of the policy much. What is the correct way to categorize my vehicle? My policy is up in less than a month, and I'd like to make sure that the next policy reflects my situation accurately.

Additionally:

1. The town in which I live borders and shares a zip code with a less desirable town. Would policy rates generally reflect my specific location within the zip code, or lump everyone in the same zip together?
2. Does your stated annual mileage affect rates significantly?

Thanks!

[eaknet]

Stated annual mileage and purpose definitely affect your rates. If I were you I would not tell the insurance company it is a commuter vehicle, I would classify it as a pleasure vehicle with less than 2,000 miles (or whatever) a year. You can still use it to commute when necessary, but you can claim the primary purpose is pleasure on the weekend or whatever. This should bring your rate to the lowest possible with that company.

This is my experience, at least. If someone with better knowledge has an expert perspective, I would defer to their expertise.


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[jpdx]

Sounds like you would be a good candidate for pay-per-mile insurance.