When you are purchasing auto insurance, one of the first questions your BrokerLink broker will ask you is: “what is your annual mileage?”
How much you drive your vehicle will be a factor when determining your premium. The farther you drive, the higher your premium may be. Some people use their car every day to commute to and from work, while others use their car only on weekends.
Here are three different ways you can figure out your annual mileage:
- If you bought your car brand new, check your current odometer reading and divide it by the total amount of years you have had your car:
For 3 years old: Current odometer reading ÷ 3 = annual mileage
For 3 ½ years old: Current odometer reading ÷ 3.5 = annual mileage
- Check previous vehicle maintenance and service records. Compare your vehicle’s mileage during an oil change to today’s mileage.
For a year ago: Current odometer reading – old odometer reading = annual mileage
For 6 months ago: Current odometer reading – old odometer reading x 2 = annual mileage
- Calculate your commute and weekend kilometres.
- Step 1: Commute Mileage: Multiply your commute to work (both ways) to the number of days you commute to work in a week.
Not sure of your daily commute? Google it! Google will tell you the exact kilometres from your home address to your work address.
20 km one way to work = 40 km per day x 5 days per week = 200 km per week for weekday commute
- Step 2: Weekend Mileage: Figure out what kind of mileage you drive on an average weekend. Add your weekend mileage to your commute mileage to get your total mileage per week.
Not sure what your weekend mileage is? As a rule of thumb, double the average kilometres you travel to work per day and use that number as your weekend driving mileage. This might change if you are headed farther away most weekends, such as to your cabin or cottage or to the mountains.
200 km per week from commute + another 80 km weekend driving = 280 km per week
- Step 3: Annual Mileage: Multiply your weekly mileage by 52 (number of weeks in a year)
280 km x 52 weeks = 14,560 km per year
Something to keep in mind: Contact your BrokerLink broker if your mileage per year is changing. For example, if you are a regular commuter that is going on maternity leave, your annual mileage may go down and save you money on your premium.