Do auto insurance companies give a discount for pleasure vs. work mileage?

Drivers with longer commutes pay $7.09/mo more on average for auto insurance than those who drive less. Ask your provider about low mileage discounts to save another 15%.

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Mathew B. Sims is Editor-in-Chief and has authored, edited, and contributed to several books. He has been working in the insurance industry ensuring content is accurate for consumers who are searching for the best policies and rates...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance...

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Reviewed byDaniel Walker
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UPDATED: Apr 20, 2020

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Things to Remember...

  • One of the factors that go into the calculation of your premium is the number of miles that the car is driven daily
  • If you use your vehicle for work purposes, you will need to get commercial or business car insurance coverage
  • Some companies provide discounts on car insurance despite what you use the vehicle for

Car insurance companies do offer a different premium rate if you drive your car for pleasure versus commuting daily to work.

Commuting 30 miles each way to work on a daily basis will put a lot of wear and tear on your car much faster than the occasional grocery shopping trip, or beach day.

More time spent on the road also translates into the possibility of more accidents and other damage occurring to your vehicle.

Be truthful when your auto insurance company asks how often and for what purpose you drive your car.

If you tell them you don’t drive it to work in order to pay less for insurance, don’t drive it to work. If you get into an accident commuting to work and you’re paying the “pleasure rate,” your insurance company may decide to refuse your claim.

Don’t wait another moment to insure your car against possible damage. Enter your ZIP code in the box below and get free and easy auto insurance quotes!

What do the auto insurance companies consider a pleasure vehicle?

Although most of us would look at a Ferrari and think of the pleasure of driving it to the beach, insurance companies judge the vehicle on how quickly the odometer turns over and not its head-turning capabilities.

The type of car factors into the price of your insurance premium, because insurance providers consider how difficult and expensive it will be to replace any damaged part.

However, a pleasure vehicle is determined by the number of miles you drive it on an annual basis. Driving less than the limit for pleasure mileage means you most likely qualify for discounts!

Most companies use the 7,500-mile benchmark. If you drive the car less than that, it’s considered pleasure; if you drive the car more that, you’re billed a higher premium.

A pleasure vehicle might be used sporadically, or you may drive it daily. The difference is that you don’t drive it very far even on the daily basis, maybe to the commuter parking lot or the train station to catch mass transit to work.

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Do I need commercial auto insurance for my work vehicle?

If you’re actually using your vehicle for work and not just driving it to work, you will need to get commercial or business car insurance coverage.

This goes for people who drive their car for jobs such as delivering food, taking customers to and from the airport, and making sales calls.

Your personal auto insurance policy won’t cover any accidents, damage, or theft that occurs on a work vehicle.

Work with your insurance agent to determine whether you need a commercial insurance policy for your work vehicle and, if so, how much coverage is necessary.

Whether you need personal or commercial insurance depends on who owns and drives the vehicle, how often you use the vehicle, and also the type, size, and weight of the vehicle.

If your business requires a higher liability limit than is typically available through personal auto insurance policies, then you’ll also need commercial insurance coverage.

If your work vehicle is owned by the business you work for, then you are not responsible for the insurance on that vehicle, your employer is. They can’t legally have you purchase the insurance on a work-owned vehicle.

Do auto insurance companies offer discounts on commercial auto insurance?

Similarly to personal auto insurance, providers offer some discounts on commercial auto insurance policies.

These discounts vary from business to business, but some examples are:

  • Multiple lines
  • Experienced driver discounts
  • Length of business
  • Multiple policy
  • Good student

Keeping your business vehicle fleet parked in a safe location could help you save money, as well as installing safety features, such as alarms, on the vehicles.

Many auto insurance companies now offer commercial auto insurance, so the market is pretty competitive. Ask about discounts before you sign with an insurance provider.

Pleasure car insurance could be right for you. Not sure where to start looking? Type your ZIP code into the free box and you’ll be able to find the companies offering auto insurance rates for your location right now!

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