Insurance companies have used mileage estimates for years to calculate car insurance premiums. However, these estimates have never been very accurate since no one really knows the exact mileage they will be driving during the course of a year. Typically the figure of 12,000 miles a year is used to calculate your premiums. However, you may be able to get cheap car insurance now by having OnStar installed in your vehicle. The reason for this is because OnStar can calculate and store exactly how many miles you are driving and this can be shared with insurance companies. To learn more go watch this video at HowStuffWorks.com.
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