The average miles driven of every vehicle in the U.S. is between 15,000 to 20,000 miles per year and most automobile insurance companies use this average to set their rates.

Yearly, car insurance holders rarely acquires 10,000 miles of any of their vehicles which end-up paying higher insurance rates for more miles.

GMAC Insurance, an insurance company owned by General Motors offers an exceptional mileage discount to all its car insurance policyholders. An in-vehicle communication technology developed by OnStar which measures the actual miles driven of a vehicle. GMAC would use this tracking data to calculate risk and rates for a particular policy.

According to Gary Kusimi from GMAC Insurance, "Miles driven is one of the primary key to determine an auto insurance rate. Historically, miles is difficult to track accurately because factors were only estimates. In this particular case, with an On Star program we are able to measure the actual miles driven and produces rates which are ties specifically with the actual miles driven by an individual driver."

Higher discount of 54 percent would be given to those driver who drives less than 12,500 miles a year. Thirteen percent to those who drives between 12,500 and 15,000 miles per year. While no discount would be given to those drivers who drives more than 15,000 miles.

OnStar has an over 5 million subscribers and GMAC Insurance offers the said discount program since January of 2004.

Car insurance discount on fewer miles are relatively significant. So if you’re retired, work from home, commute by mass transit or have a second or third car which doesn’t get a lot of use, this low mileage discount from GMAC Insurance is certainly something to look into.