, the insurance company will ask you to estimate your annual mileage. They’ll take that number into account when calculating your premiums—but it typically has only a small effect on how much you pay for coverage. Most companies won’t give low-mileage drivers a direct discount based on their self-reported mileage.
Drivers who drive considerably less than the national average of 13,476 miles per year typically see premiums that are around 8% lower than average.
Opt for a pay-per-mile car insurance policy: Not every company has pay-per-mile insurance. Allstate and Nationwide are the only major insurers that offer mileage-based insurance, but smaller companies like Metromile and Mile Auto specialize in it.
Enroll in your insurer’s safe driving telematics program: While usage-based discounts that reward safe driving aren’t technically low-mileage discounts, low-mileage drivers are more likely to earn discounts by avoiding unsafe driving habits.
Qualify for a low-mileage discount: Direct low-mileage discounts are somewhat rare, but a few car insurance companies offer them, typically to drivers who drive 10,000 miles per year or less.
The table below compares the average annual premium for Jerry customers based on age group and annual mileage. In every age group, drivers with a lower-than-average annual mileage paid less than high-mileage drivers.
Age group
7,000 miles or less
7,000 to 15,000 miles
15,000 miles or more
25 and under
$2,023
$2,158
$2,196
26 to 54
$1,566
$1,676
$1,715
55+
$1,217
$1,435
$1,519
All
$1,623
$1,767
$1,805
Mileage makes the biggest difference for drivers over age 55. In this age category, low-mileage drivers pay approximately 18% less for coverage than drivers with an average annual mileage.
Keep in mind Mileage is just one factor in the cost of car insurance. Your driving record, credit score, ZIP code, and age will all have a bigger impact on your premiums.
Not sure if you’re really low-mileage? Here’s the average annual mileage for every age group:
16 to 19: 7,624
20 to 34: 15,098
35 to 54: 15,291
55 to 64: 11,972
65+: 7,646
If you drive less than 7,000 miles per year, you’ll typically be considered a low-mileage driver—but anyone who drives less than the national average of 13,476 miles per year has the potential to save with pay-per-mile insurance.
The best car insurance companies for low-mileage drivers
The best car insurance companies for low-mileage drivers looking to save money are:
Allstate
American Family
Auto-Owners
Farm Bureau
Nationwide
Metromile
Mile Auto
PEMCO
Safeco
State Farm
USAA
Most insurance companies assign lower car insurance rates to drivers who report driving less, but the companies listed above offer special opportunities for low-mileage drivers to save through discounts, pay-per-mile programs, or other usage-based insurance programs.
Insurance company
Type of savings
Estimated discount*
Low mileage cutoff
How to claim the discount
Allstate
Pay-per-mile insurance (Allstate Milewise)
49%
No cutoff
Enroll in Milewise as an existing Allstate customer
American Family
Low-mileage discount
Varies
7,500 miles or less
Contact an American Family agent
Auto-Owners
Low-mileage discount
Varies
10,000 miles or less
Upload a photo of your vehicle’s odometer
Farm Bureau
Low-mileage discount
Up to 20%
7,500 miles or less
Contact a Farm Bureau agent
Nationwide
Pay-per-mile insurance (Nationwide SmartMiles)
Up to 40%
No cutoff
Enroll in SmartMiles as an existing Nationwide customer
Metromile
Pay-per-mile insurance
47%
10,000 miles or less
Purchase an insurance policy through Metromile
Mile Auto
Pay-per-mile insurance
30 to 40%
10,000 miles or less
Purchase an insurance policy through Mile Auto
PEMCO
Low-mileage discount
Varies
8,000 miles or less
Contact a PEMCO insurance agent
Safeco
Low-mileage discount
Up to 20%
Not specified
Verify online with odometer reading and mileage estimate
State Farm
Usage-based insurance (Drive Safe & Save)
Up to 30%
7,500 miles or less
Enroll in Drive Safe & Save as an existing State Farm customer
USAA
Pay-per-mile insurance (Noblr)
Over 50%
No cutoff
Enroll in Noblr as an existing USAA member
* Estimated discounts are based on insurance providers’ estimates. Where an estimate is not provided, we’ve indicated that discounts vary.
MORE:Allstate Milewise review
If your insurance company doesn’t offer a low-mileage discount…
Not all insurance companies offer car insurance discounts to customers who log fewer miles annually than the average driver.
Major auto insurance companies that don’t offer direct savings for low-mileage drivers include GEICO, Liberty Mutual, and Progressive. While you could still find low rates with one of these carriers based on other elements of your profile, don’t expect to save based on the number of miles you drive.
If your insurance provider doesn’t offer lower rates based on annual mileage, you can:
Get a telematics device: Most companies—including those without low-mileage discounts—allow safe drivers to lower their auto insurance rates by tracking their driving with a telematics mobile app or plug-in device that looks for unsafe driving behaviors like hard braking or late-night driving.
Explore other discounts: You may qualify for a lower base rate if you pay your premium in full or if you bundle homeowners insurance with your auto insurance policy.
Compare car insurance quotes from other companies: If you drive less than 7,000 miles per year, you’re likely eligible for a cheap pay-per-mile rate or a low-mileage discount from another provider.
helps low-mileage drivers lower their car insurance costs with free quotes from over 55 insurance providers, including Allstate, Nationwide, PEMCO, and Safeco.
Whether you’re looking for savings on a traditional policy or a low monthly rate with pay-per-mile insurance, Jerry’s easy-to-use app is the quickest way to explore coverage options for low-mileage drivers.
No spam or unwanted phone calls · No long forms · No fees
4.717k Ratings
5M+Drivers Joined
7M+Cars Garaged
Methodology
Our editorial team analyzed quoting data from over 55,000 real Jerry customers to determine the average annual premium for drivers in three mileage categories (7,000 miles per year or less, 7,001 to 15,000 miles per year, and over 15,000 miles per year) as well as the percentage increase between low-mileage, average, and high-mileage drivers.