The 100,000-Mile Rule: How to Save on Car Insurance Without Adding Risk

Car insurance is essential, but paying for more coverage than you need can quietly drain your finances. The 100,000-mile rule provides a helpful checkpoint: once your vehicle passes that mark, it may no longer make sense to keep both collision and comprehensive coverage. These protections only pay up to your car’s current market value, which declines steadily as mileage increases. At a certain point, the annual premiums outweigh the benefit.

For example, spending $400 a year to cover a car worth $4,000 often delivers little value, especially after deductibles. Redirecting those dollars into savings, debt reduction, or future investments can build financial strength instead of padding an insurer’s revenue.

The rule isn’t universal—leases, loans, or high-value vehicles may require full coverage. But for many older cars, scaling back frees up cash without adding significant risk. The key is balance: maintain liability protection, but avoid paying for coverage that no longer serves you.

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