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Reader’s Question:

Hi. I’m a businessman in California and I travel quite often. Is it true that I’ll be paying higher premiums on my auto insurance because of this? What does travel distance have to do with auto insurance anyway?

Alvin

Bellflower, CA

Thanks for the question, Alvin.

You see, there are a lot of factors used to determine the premium price of your auto insurance. This includes the miles driven every year. This is because of the premise that the more often your car is on the road, the more likely it is for your car to figure in an accident. This may sound morbid, but it logically it is true, that’s why most insurance companies take this as a precaution. If your insurance company finds out that you drive more than the average given miles per year, which is 10,000 miles (this usually happens when you renew your policy), then the price of your premium will be higher.

There are also factors with regards to constant travel that can affect the price of your policy. Aside from mileage, your insurance company in California will also take a look at where you travel and how often you make trips there. This is to take note on how often you visit places that have higher car theft or accident rates. Because they are high risk areas, frequent visits and travels to those areas can also increase your auto insurance premium.