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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.
 

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For the cars that get 14mpg, it takes 20cents /mile to operate. The 25mpg ride would cost 11 cents/mile. Assuming you drive each one 12,000 miles, it would cost $2400 to operate the 14mpg car vs $1320 for the 25mpg ride. The difference is $1080 saved per 12K miles driven, so you could say that it would take roughly 7900 miles to pay for the insurance.
 
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