How many miles you drive, where you live and what you do for a living can drive up your auto insurance rates, according to new research.

A Consumer Federation of America report confirms that driving less can save you money on insurance premiums, though not all insurers support this policy. The study noted that, in calculating a customer’s premiums, some insurance companies tend to put more weight into personal information, such as drivers’ credit scores and professions, rather than risk indicators such as mileage.

“The insurance industry knows that how many miles people drive each year is directly related to their risk of being in an accident, but companies consistently ignore this and charge drivers higher rates, even when they are lower risks,” said insurance expert Douglas Heller in the CFA's release. He helped conduct the analysis with CFA researchers.

Overall, the report found that drivers with less mileage annually have 44 percent fewer claims, whereas drivers with higher annual miles saw a 28 percent increase in claims reported, the study found. 

While there is a correlation between the miles you drive annually and the premiums you pay, only the state of California gives discounts for drivers with low mileage. California drivers are protected under the consumer protection law. Outside of California, insurance companies like Progressive and Farmers Insurance offered no discount for lower miles, the report said.

Based on the research, for every 5,000 fewer miles driven annually, drivers nationally only saved $30 dollars per year. In comparison, California drivers with the same mileage would save roughly $81 dollars, the report said. 

The premiums for drivers in Los Angeles dropped 8.7 percent for every 5,000 miles less traveled. Comparatively, the report found that other cities saw on average reduction of only 1.5 percent (or $3 dollars per month).

“At the same time, many of these companies feel perfectly at ease charging lower-income drivers with perfect records higher rates than well-to-do customers based on factors like their job title, education level, credit score and whether they rent or own their home,” Heller added in the annoucement of the study. 

In 2017, ProPublica analyzed premiums and payouts in select states and showed how some major insurers charged occupants in minority neighborhoods as much as 30 percent more than those in other areas with similar accident costs.

According to DMV.org, professionals such as doctors and lawyers see higher rates because they face greater stress and lack of sleep, which contribute to a greater chance for accidents. These professionals often travel to other locations for meetings with clients, which increases mileage.

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