It’s good news for people with Pay-As-You-Drive features on their auto insurance policies, and bad news for the auto industry. What is it? Well, according to recent data released by the Federal Highway Administration, American drivers are racking up the fewest amount of miles, overall, since 2003.
Specifically, the Detroit News reports, the most recent numbers show that in July, driving was down 2.5 percent, with a total of 261.8 billion miles driven, which is 6.7 billion fewer miles than Americans drove in the same month last year.
July, in fact, marked the United States’ fourth consecutive month of decreased driving, which trend, economists caution, means that many households are struggling to make ends meet and are doing anything they can do make the money they have last as long as possible.
While it’s obvious that less driving means lower rates for people with low mileage discounts or Pay-As-You-Drive programs, it’s not great news for the auto industry. Why not? Because fewer miles means less wear and tear on cars, and that means people are going longer between new vehicles.