Auto insurance can be quite expensive, especially when you have multiple vehicles. Vehicles in this country are driven an average of 15, 000 to 20, 000 miles per year. This is the figure used by most auto insurance companies when they set their rates. However, many drivers, especially those who own more than one car, drive much less per year on each vehicle. These people typically pay the same rates as those who drive thousands more miles.

Thanks to GMAC Insurance, these low-mileage drivers now have another option. GMAC offers low-mileage discounts to its customers based on information transmitted to the company by OnStar. This technology reports exactly how many miles are driven in order to allow the company to offer discounts on its policies to drivers who don't put a lot of miles on their cars.

The number of miles driven is one of the primary factors used in setting auto insurance rates, yet it is usually based on an estimate. With the new OnStar program, the insurance company is able to track the actual number of miles driven in order to tailor the rate to the driver.

Discounts of up to 54% are offered to drivers who drive fewer than 12, 500 miles per year. Those who drive 12, 500 to 15, 000 miles per year receive a 13% discount. GMAC has been offering the mileage discount program to their insurance customers since January 2004.

Many people who are retired, work from home or use mass transit to get to work would receive lower rates as a result of the low mileage discount from GMAC Insurance. If you don't drive much, you might benefit from participating in this program.