The Impact of Annual Mileage on Car Insurance

The Impact of Annual Mileage on Car Insurance

Whether you just use your car to get to and from work every day, or travel a 4-hour commute between Riyadh and Khobar. It certainly pays to know how many kilometers you’re racking up, because it may come in handy when you’re looking for an insurance policy. Actually, knowing your estimated annual mileage could significantly lower your car insurance rates in Saudi, if considered.

What is Annual Mileage?

This is the number of kilometers that you will – or think you will – drive in a year. Of course, the number varies from one person to another, because one’s annual mileage includes driving to:

  • Work
  • School
  • Running errands
  • Visiting family
  • Going out for leisure
  • Road trips

How does my annual mileage impact car insurance rates?

There are several factors that affect the price of car insurance in Saudi. Mainly, insurance providers in Saudi ask about your age, your driving history, and the type of car you will be driving.

Mileage is one of many factors that can affect your car insurance price too. Basically, car insurance is all about risk and calculations. So, the less you drive, the less likely you are to be in an accident or cause one. However, when you buy car insurance in Saudi, most insurers won’t ask for an estimated annual mileage. Instead, they predict how frequently and how far you drive.

COVID-19’s impact on mileage & car insurance

Since the COVID-19 outbreak, many of us have used our cars much less than before – the commute to work has been canceled, as well as social gatherings. For this reason, a number of car insurance companies took the initiative to automatically extend car insurance dates for an additional 2 months, offering premium relief for policyholders.

Similarly, many drivers around the world asked their car insurance companies for low-mileage discounts or switched their car insurance usage-based insurance plans.

So, wouldn’t be fair if more insurance providers took your annual mileage into consideration too?

Is there low-mileage insurance in KSA?

Unfortunately, pay-per-mile or low-mileage car insurance is not available currently for low-mileage drivers in Saudi. Nonetheless, wakeel can help you find fairly-priced quotes and compare multiple car insurance quotes online.

At wakeel, we work to ensure that every policyholder bought car insurance that fits their needs perfectly. Drivers don’t have to pay the same cost whether they drive far or very little; that’s why we give thought to your annual mileage.

How to calculate your annual mileage

It can be tricky to estimate your mileage for the first time. So, here’s 3 tips to work out how much you’re likely to drive in a year.

Start by locating your odometer on your dashboard. The odometer is an instrument to measure mileage and display the reading.

  • Do the math: roughly estimate how many kilometers you think you’ll drive in an average week. This includes driving to work, running errands, and socialising. Then multiply your weekly mileage by 52 (number of weeks in a year)

To exemplify, 120km x 52 = 6240km

Not sure of your daily commute? Google it! Google Maps can provide accurate answers.

  • Also, use Google Maps Timeline: shows an estimate of places you may have been and routes you may have taken based on your Location History. At the end of each month, Google sends a summary of the time and distance you have spent driving.
  • Or, compare it with the previous MPVI certificate: Motor vehicle periodic inspection (Fahas) shows everything you need to know about a car’s history including your odometer reading. You can get an idea of your annual mileage simply by comparing the difference between your current and last reading.

All in all, annual mileage could impact everything from how much you pay for a car to the cost of car insurance.

Be sure that there’s always a way to find affordable car insurance in Saudi, all you have to do is widen your horizons. Compare car insurance prices in Saudi online.  

Did you find this blog helpful?
Loved 0 times
Disliked 0 times