If you work from home, commute on public transportation, or don’t get out much, you might qualify for low-mileage car insurance or a low-mileage discount on your
car insurance
. Some of the best low-mileage car insurance companies include
Allstate
,
Metromile
, Mile Auto,
Nationwide
, and
USAA

How mileage affects car insurance premiums

Mileage is one of many factors that impacts your car insurance rates. The more you drive, the higher your chances of getting into an accident or being pulled over for a traffic violation. This higher level of risk will result in higher car insurance rates. 
Alternatively, if you’re a retiree, college student, or remote worker and you don’t drive all that often, you’re less likely to file a claim with your insurance company, and you might qualify for low-mileage car insurance or a low-mileage discount. 
Our insurance experts compared the average annual premium for drivers 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 the age of 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, driving history, credit score, ZIP code, and age will all have a bigger impact on your premiums.

Low-mileage drivers

If you drive less than 7,000 miles per year, you’re considered a low-mileage driver. That being said, anyone who drives less than the national average of 13,476 miles per year has the potential to save on their traditional car insurance policy.
Here’s the average annual mileage for Americans in 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

Low-mileage car insurance and low-mileage discounts

When you get an
auto insurance quote
, the insurance company will ask you to estimate your annual mileage. While they’ll take that number into account when calculating your premiums, it will only have a small effect on how much you pay for monthly coverage. Most companies won’t give low-mileage drivers a direct discount based on their self-reported mileage.  
Instead, car insurance companies that offer low-mileage car insurance or low-mileage discounts will use the following programs or methods to track your mileage:
  • Pay-per-mile car insurance
    : Also referred to as “pay-as-you-go car insurance,” a pay-per-mile auto insurance policy has a monthly base rate plus a per-mile rate for each mile you drive. This means your premium will change on a monthly basis. Also, some pay-per-mile car insurance programs include road trip exceptions if you occasionally want to hit the road for a longer trek. 
  • Telematics program
    : A telematics program, also referred to as a usage-based discount, will reward safe driving and low mileage with a discount. Your insurance company will have you download an app or install a telematics device on your vehicle that will track your driving habits and mileage. Depending on how much you drive and your driving behavior, you might see a drop in your car insurance costs. 
  • 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 best car insurance companies for low-mileage drivers

Most insurance companies assign lower car insurance rates to drivers who report driving less, but our experts have put together a list of the best car insurance companies that 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
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
Pay-per-mile insurance (Nationwide SmartMiles)
Up to 40%
No cutoff
Enroll in SmartMiles as an existing Nationwide customer
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
Low-mileage discount
Up to 20%
Not specified
Verify online with odometer reading and mileage estimate
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
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. 

What to do if your car insurance company doesn’t offer low-mileage car insurance

Not all insurance companies offer low-mileage car insurance or 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.
  • Explore other discounts: You may qualify for a lower base rate if you pay your premium in full or if you
    bundle
    your auto insurance policy with your
    homeowners insurance
    .
  • 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.
    Jerry
    helps low-mileage drivers lower their car insurance costs with free quotes from over 55 insurance providers. 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 insurance coverage options for low-mileage drivers. 
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FAQ

Where is Mile Auto available?

Mile Auto, a popular pay-per-mile insurance company, is available in
Arizona
,
California
,
Florida
,
Georgia
,
Illinois
,
Ohio
,
Oregon
,
Pennsylvania
,
Tennessee
,
Texas
, and
Wisconsin

What companies offer pay-per-mile insurance?

Allstate
Milewise,
Metromile
, Mile Auto,
Nationwide
SmartMiles, and
USAA
have pay-per-mile options. 

Do I have to take a picture of my odometer to receive a low-mileage discount?

Some car insurance companies require you to take a photo of your odometer every month to receive a low-mileage discount. 

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. 

Sources

Meet our experts

avatar
Hillary Kobayashi
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information.
Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
avatar
Amy Bobinger
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Licensed Insurance Agent — Expert Insurance Editor
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars.
Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.

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