What is considered the average miles driven per year by insurance companies when determining premiums?

Insurance companies typically consider 12,000 miles per year as the average mileage when determining auto insurance premiums. This figure serves as a standard benchmark for estimating the risk associated with a driver's activity and assessing potential claims. Higher annual mileage could indicate a greater likelihood of being involved in accidents, which may lead to higher premiums, while lower mileage could suggest a reduced risk, possibly resulting in lower premiums.

While other figures, like 10,000 miles or 14,000 miles, may also be used by some insurers or in specific situations, 12,000 miles is widely accepted as the industry standard for normal driving habits. This average takes into account the typical driving patterns of the general population, making it a useful metric for insurers in their calculations.