Join Date: Jan 2006
Location: Colorado Springs, CO.
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Mileage vs. insurance costs....math experts needed.
I've posed this question to a few different groups and haven't really been confidant in the answers I've gotten, so I thought I'd give the brainiachs here a shot at it.
Here's the deal: I have four vehicles that get driven on a regular basis. Three of them get 14mpg. The fourth vehicle gets 25mpg, but it costs me $706/yr to insure.
The question: How many miles a year do I have to drive the fourth vehicle to overcome the cost of it's insurance? Please use $2.75/gal for all calculations.
For the sake of simplicity, I have excluded maintanence costs, etc. I have received answers ranging from about 3000 miles to 9000 miles. There has been some discussion of a break even point when driving one vehicle or the other, but that doesn't really apply here because I'm considering the cost of the ADDITIONAL vehicle, not one vehicle or the other. I ask the question because if the cost of ownership is greater than the amount saved via increased economy, I might as well get rid of it and drive one of the three existing vehicles instead.