Cheap Car Insurance if You Drive Less Than 50 Miles a Day
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People who drive less than 50 miles a day have an advantage when it comes to finding cheap car insurance. After all, the risk of accidents drops proportionately with the number of miles driven.
People who have also have Jerry have even more of an advantage. After all, getting free quote estimates from over 40 providers in 45 seconds is easier than dealing with lots of calls and paperwork.
Getting both, however, is even better. So read on to learn what you need to know about cheap car insurance for low-mileage drivers.
Low-mileage car insurance discounts
While car insurance providers may have different definitions of “low mileage,” many companies offer discounts to drivers with 7,500 to 15,000 in annual miles. If you drive less than 40-50 miles a day, you may qualify.
40 miles a day is just under 15,000 annual miles, and if you usually drive under 40-50 miles per day, you’re probably not making those longer trips every day anyway, so it’s likely that you meet the requirements for discounted insurance.
However, most car insurance providers will not simply take your word for it when trying to determine how much you drive.
You may have to install a tracking device or software that logs mileage and driving habits to prove eligibility, which can come with an installation or monthly fee in addition to your premium.
This discount may also apply if certain lifestyle changes have taken place. Recent retirees, people who have relocated to a closer place of employment, and those who have begun telecommuting or carpooling usually experience a drop in miles and become eligible for a low-mileage car insurance discount.
A person could also become eligible for savings after buying a second car and sharing mileage between two vehicles.
Key Takeaway: Driving less than 15,000 miles per year—or 40 per day—can net you discounted insurance, though you’ll likely need to prove it by paying for tracking. Lifestyle changes which lower your mileage, or splitting miles between two cars, could also let you qualify.
To see if you qualify for low-mileage car insurance, call your agent or carrier and ask what discounts they offer.
Usage-based car insurance
Usage-based car insurance has a pay-per-mile approach, and eligibility for this type of coverage also requires some proof of driving habits.
Most companies offering this form of insurance require drivers to install a telematics device in their car–a device that keeps track of mileage, times of day the car is driven, average length of trips, and even how hard a driver depresses the brakes. While this device reveals a lot of personal information, it can result in up to 50% savings on car insurance.
Some car insurance companies offer a discount to drivers who simply use the telematic device. This is because companies project lower accident risk for policyholders who are knowingly having their driving habits monitored.
Usage-based car insurance employing telematic devices may also benefit the parents of young drivers because it helps to monitor teen driving habits.
Key Takeaway: To get pay-per-mile insurance, you’ll usually need to install a telematics device in the car to track your mileage and driving habits. If you’re comfortable with sharing that info, it can save you money even without a pay-per mile, and can help with managing teen drivers as well.
Keep in mind that not all states offer low-mileage discounts or usage-based car insurance, and there are often requirements that vehicles must meet for eligibility. But if you don’t drive very far, it’s definitely worth looking into an insurance policy that rewards your kind of driving.
For even more savings across all 50 states, don’t forget to check out Jerry. After helping you find a new plan that can save you hundreds of dollars a year, it even will help you cancel the old plan too.
How far is 50 miles?
To put all of this talk about “driving less than 50 miles” into perspective, you’ll reach 50 miles worth of driving in about 50 minutes while driving 60 mph on the highway. So if your work commute is an hour or more round-trip, you might not actually qualify for the low-mileage discount–track your mileage to be sure.
Can I get a low-mileage discount without using a telematics device?
Whether or not you use a telematics device, your insurance company is going to need proof of low-mileage driving before they give you any discounts. The easiest way to do this is with a telematics device.
However, your insurance company might accept different methods of proof, such as odometer readings after a certain period of time.