Every time your vehicle is on the road, the odometer continues to add miles. Over time, even well-maintained vehicles no longer perform as well as when they were new. Within the auto insurance industry, 100,000 miles is often viewed as a turning point. While many drivers have heard of this benchmark, few understand why it matters. The agents at Kriener Insurance explain why mileage plays an important role in auto insurance decisions.
Understanding the 100,000-Mile Rule in Auto Insurance
The 100,000-mile rule is an informal guideline used in the auto insurance industry. It suggests that once a vehicle reaches this mileage, drivers may consider dropping collision and comprehensive coverage. The reasoning is tied to vehicle value. Insurance carriers will not pay more for repairs than the car’s current market value, and vehicles with high mileage often have a significantly lower value.
If a high-mileage vehicle is involved in an accident, there is a greater chance the insurance carrier will declare it a total loss rather than pay for extensive repairs. In many cases, dropping collision and comprehensive coverage can reduce premiums, but the decision is ultimately based on whether the cost of coverage outweighs the potential payout.
This guideline generally applies to vehicle owners in Woodbury, MN who own their cars outright. Drivers who are still paying off an auto loan are typically required by the lender to maintain collision and comprehensive coverage until the loan is fully repaid. Leased and rental vehicles also do not follow the 100,000-mile rule, as full coverage is usually required under those agreements.
Will Auto Insurance Still Cover a Vehicle With Over 100,000 Miles?
Auto insurance coverage for vehicles with more than 100,000 miles varies by insurance carrier. Some carriers may recommend liability-only coverage for high-mileage vehicles, while others allow drivers to keep collision and comprehensive coverage regardless of mileage.
The key takeaway is that a vehicle with 100,000 miles or more is often considered a higher risk due to reduced value. That does not mean you must change your coverage, but it does mean your policy should be reviewed carefully.
Kriener Insurance does not tell drivers what decisions to make. Instead, we help vehicle owners understand their options and the potential impact on coverage and cost. If you are driving a high-mileage vehicle, we encourage you to review your auto insurance policy with our team. Contact our Woodbury, MN office to discuss coverage options that help protect you and your vehicle on the road.
