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, Mile Auto, Nationwide, State Farm and USAA.
How mileage affects car insurance premiums
Mileage is one of many important factors that impact 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. A higher level of risk will result in higher car insurance rates.
On the flip side, you are less likely to file a claim with your insurance company if you’re a retiree, college student or remote worker who doesn’t drive as often. These drivers often qualify for low-mileage car insurance coverage or even a low-mileage discount on an existing policy since they are on the road less.
Keep in Mind: Mileage is just one factor in the cost of car insurance. Your driving history, credit score, ZIP code, age and vehicle will all impact your premiums.
Low-mileage drivers
If you drive less than 7,000 miles per year, you’re considered a low-mileage driver by most insurance companies. This often qualifies you for special mileage discounts or even pay-per-mile insurance policies. 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 vehicle mileage for Americans in every age group:
- 16 to 19: 7,624
- 20 to 34: 15,098
- 35 to 54: 15,291
- 55-64: 11,972
- 65+: 7,646
Low-mileage car insurance and low-mileage discounts
Insurance companies will ask about your estimated annual mileage when you request an auto insurance quote. While they’ll take that number into account when calculating your premiums, it will only have a small impact on your monthly coverage cost. And most insurers won’t give drivers significant low-mileage discounts based on self-reported mileage alone.
Instead, many car insurance companies that offer low-mileage car insurance or discounts will use certain programs or methods to confirm your driving habits.
- Pay-per-mile car insurance: Also referred to as “pay-as-you-go car insurance,” a pay-per-mile auto policy has a monthly base premium plus a cost for each mile you drive. This means your premium can fluctuate on a monthly basis. Some pay-per-mile car insurance programs include road trip exceptions if you occasionally take a longer trek.
- Telematics program: A telematics program helps reward low mileage and safe drivers with added discounts. Your insurance company will have you download an app and/or install a telematics device on your vehicle that will track your driving habits and distance. Depending on how much you drive and your behavior behind the wheel, you could see a drop in your car insurance costs.
- Low-mileage discount: Direct low-mileage discounts are somewhat rare, but a few car insurance companies do offer them. They are typically limited to drivers with 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 |
|---|---|---|---|---|
| Allstate | Pay-per-mile insurance (Allstate Milewise) | 49% | No cutoff | Enroll in Milewise as an existing Allstate customer |
| American Family | Low-mileage discount | Up to 25% | 8,000 miles or less | Contact an American Family agent |
| 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 |
| Lemonade | Low-mileage discount | Up to 40% | No cutoff | Purchase an insurance policy through Lemonade |
| 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 |
*Discounts are based on insurance providers’ published 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 even discounts to drivers who log fewer annual miles than average.
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 alone, you can:
- Get a telematics device: Most companies — including those without specific low-mileage discounts — still offer savings to safe drivers who are on the road less. Savings are usually determined by tracking driving habits 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.
