Some states see as much as 26 percent more on their bills because of extra miles

Remember when your auto insurance would increase when you got a fancy new car or were at fault in an accident? Now all you have to do is drive more and rates will go up.

In California, your extra miles mean your insurance could spike 26 percent, InsuranceQuotes says.

Your insurance is supposed to protect you in case of an accident. When you drive more, it means you are at more of a risk to get into an accident than those who drive less. It makes sense — but in numbers, your insurance company is charging you a lot more than you probably realize.

Auto miles increase

California residents have the highest jump in rates. If you’re usually driving 5,000 miles annually and then you start to drive 10,000 miles, your rate goes up nearly 14 percent. If you start to drive 15,000 miles, it goes up roughly 22 percent. Drivers who make the big leap from 5,000 to 20,000 miles every year can see an increase of almost 26 percent.

The good news for the rest of us is that no other state has rates that high. Alabama is next in line, and they don’t break the 10 percent barrier.

But there is just one lone state where you don’t get charged for driving more: North Carolina. Regardless of whether you drive 5,000 miles or 20,000 miles a year, your rate won’t change.

What does this mean for premiums? In North Carolina, it means nothing. The average premium there is $644 regardless of how much your mileage changes. But in every other state, rates go up.

While California is the state with the biggest jumps in premiums, most states scale their rates much more slowly. Rhode Island residents only see a 1.1 percent jump from 5,000 miles to 20,000 miles, while Georgia’s rates go up 2.5 percent, Texans will see a 2.8 percent hike, and the people of Oregon have a 3.1 percent increase.

InsuranceQuotes says California residents don’t have the same opportunities for discounts that other states do. Here, residents are charged the same regardless of how long they have been driving, credit scores, and other factors. So mileage is one of the only ways insurance companies can charge more money. In other states, people can get discounts by paying in full for their insurance, having good credit, or loyalty to their current insurance company.

If you’re in a state that charges a lot more for increase in mileage, you might think it’s a good idea to simply lie about how many miles you drive annually to save on costs. InsuranceQuotes says it’s not worth the risk. Many insurance companies are not only punishing those who lie about their mileage, they’re finding ways to verify mileage. In California, drivers have to have their odometers verified every year with their insurer to show they are driving what they say they are.

If you’re looking for cheaper rates, many states offer pay-as-you-drive options. Unfortunately, many drivers aren’t interested in trading their privacy for less expensive insurance.

Also keep in mind that the car you choose can up your rate even more.

Meet the Author

Dori Zinn

Dori Zinn


Zinn is a freelance journalist based in Fort Lauderdale, Florida.


auto repair, infographic, insurance

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Article last modified on November 1, 2017 Published by, LLC . Mobile users may also access the AMP Version: Your Insurance Rate Goes Up the More You Drive - AMP.