Why do car insurance companies say 12000 miles is the average?

The 12,000-mile average is based on national statistics compiled by the Federal Highway Administration (FHWA). According to the FHWA, the average American driver logs about 13,476 miles per year. However, this number can vary significantly depending on a number of factors, such as where you live, your age, and your occupation.

For example, drivers in rural areas tend to drive more miles than drivers in urban areas. This is because rural areas are typically less densely populated, and people often have to drive longer distances to get to work, school, and other activities. Similarly, younger drivers tend to drive more miles than older drivers. This is because younger drivers are more likely to be commuting to school or work, and they are also more likely to take road trips and go on vacation.

As a general rule, car insurance companies use the 12,000-mile average as a starting point for setting rates. However, they will also take into account a number of other factors, such as your driving record, your age, and the type of car you drive. If you drive more than the average number of miles, you can expect to pay a higher premium. However, if you drive less than the average number of miles, you may be able to get a discount on your premium.