Carrier vs. Carrier Comparisons
Do you have a short work commute or take public transportation to work? Is your car primarily used just to run errands? If you don’t drive your car much, that may be good news for your wallet. You may qualify for lower car insurance rates with low-mileage car insurance. Car insurance rates for low-mileage drivers are often lowered with low-mileage discounts or usage-based car insurance.
If you drive less, you’re statistically less likely to get into a car accident and have to file an insurance claim. Insurance companies love low-mileage drivers because they are less risky to insure. As a reward, you may be eligible for lower premiums with a low-mileage discount.
Car insurance for low-mileage drivers
In the table below, you can see the best low-mileage car insurance companies. There are many companies that offer savings for driving less miles, but these are the highest rated companies by consumers that offer a specific discount for it.
These companies either offer low-mileage discounts to drivers who don’t drive many miles or they offer pay-per-mile insurance coverage. The table includes the top 10 low-mileage car insurance companies based on customer ratings (as of March 17, 2020).
|Company||Score||States company sells car insurance in|
|USAA||4.71||AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY|
|Metromile||4.20||AZ, CA, IL, NJ, OR, PA, VA, WA|
|Commerce Insurance||4.04||CA, MA, ME, NH, OR, VT, WA|
|American Family||4.03||AZ, CO, GA, IA, ID, IL, IN, KS, MN, MO, ND, NE, NV, OH, OR, SD, UT, WA, WI|
|Allstate||4.02||AK, AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY|
|Nationwide||4.02||AK, AL, AR, AZ, CA, CO, CT, DC, DE, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY|
|Safeco||4.02||AK, AL, AR, AZ, CA, CO, CT, FL, GA, IA, ID, IL, IN, KS, KY, LA, MA, MD, MI, MN, MO, MS, MT, NC, ND, NE, NH, NM, NV, NY, OH, OK, OR, PA, SC, SD, TN, TX, UT, VA, VT, WA, WI, WV, WY|
|Farm Bureau Property & Casualty Insurance Company (FBPCIC)||4.00||AZ, IA, KS, MN, NE, NM, SD, UT|
|Automobile Club of Southern California (ACSC)||3.87||CA|
|Mercury Insurance Group||3.72||AZ, CA, FL, GA, IL, NJ, NV, NY, OK, TX, VA|
|Direct General||3.70||AL, AR, FL, GA, IL, LA, MS, MO, SC, TN, TX, VA|
Please note that low-mileage car insurance offers may not be available in all states the company sells in.
Low-mileage car insurance discounts
The following companies are from the top 10 low-mileage car insurance companies ranking and offer low-mileage discounts to lower your car insurance premium if you don’t drive a lot. The discounts for each company are outlined below.
USAA offers an Annual Mileage Discount, which is based on the number of miles you drive in a year. If you drive less than the number of miles USAA caps the discount at, you could qualify for this discount. USAA does restrict this discount to drivers 29 and older. Please note that USAA car insurance is only available to active and former military members and their families. Check out USAA reviews.
PEMCO’s low-mileage discount is for PEMCO car insurance policyholders that drive less than 8,000 miles annually. Be sure to check out PEMCO reviews from drivers.
Commerce’s low-mileage car insurance discount is called Annual Mileage Discount. Commerce will determine your discount amount based on the number of miles you drive in one year. To learn more about Commerce Insurance, read Commerce reviews.
American Family offers a Low-Mileage Driver Discount to car insurance policyholders who drive less than 7,500 miles per year. You can read American Family reviews to learn more about AmFam car insurance.
Safeco’s Low-Mileage Discount allows drivers to save up to 20 percent on their Safeco car insurance policy. Safeco’s requirements are for drivers to drive less than 8,000 miles a year. Take a look at Safeco reviews to learn more about customers’ experiences with the company.
Farm Bureau Property & Casualty Insurance Company (FBPCIC)
Farm Bureau car insurance policyholders can qualify for a low-mileage discount if they drive their car less than 7,500 miles a year. Be sure to read Farm Bureau reviews to learn more about the company.
Automobile Club of Southern California (ACSC)
ACSC offers a low-mileage discount called Verified Mileage Discount. Drivers can save up to 19.1 percent on their ACSC car insurance policy depending on the number of miles their car is driven annually. Drivers are required to submit their odometer reading to ACSC when they’re requested to. You can read ACSC reviews if you want to see what customers have to say about the company.
Mercury Insurance Group
Mercury offers an estimated annual vehicle mileage discount. This discount is based on how many miles your car is driven in one year. To learn more about Mercury, read Mercury Insurance reviews.
Direct General’s low-mileage discount is up to 5 percent off car insurance depending on the number of miles you drive your car. The mileage cap to qualify for the low-mileage discount varies by state, but drivers typically need to drive between 7,500 and 15,000 miles a year or less. Take a look at Direct General reviews to see what customers say about car insurance with this company.
Please be aware that the low-mileage discounts may not be available in every state the company sells car insurance in and the mileage cap and discount amount may vary by state.
Usage based low-mileage car insurance
Low-mileage drivers may benefit from pay-per-mile car insurance. Metromile is a pay-per mile car insurance company and is ranked No. 7 on the best low-mileage car insurance companies ranking. Allstate and Nationwide also offer pay-per-mile car insurance as an option. Pay-per-mile car insurance is a usage-based car insurance option that benefits drivers who don’t drive a lot.
Rather than paying a set premium every month, drivers with Metromile only pay for what they use. Metromile charges a low flat base rate for car insurance that’s based on traditional auto insurance rate factors including your driving history and your car, and then charges a few cents for every mile you drive.
Metromile reports that drivers save an average of $741 per year on car insurance with Metromile. According to Metromile, drivers who drive less than 2,500 miles a year save an average of $947 per year. Metromile measures the miles you drive by using the Metromile Pulse telematics device that plugs into your car’s diagnostics port.
Metromile is designed to save low-mileage drivers money on car insurance. You can learn about what customers think of the company by reading Metromile reviews. Metromile isn’t currently available in every state, but it’s planning to expand. If you’re interested in Metromile but it’s not available in your state yet, you can put yourself on a waitlist on Metromile’s website to be alerted when Metromile coverage is available in your area.
Milewise is Allstate’s pay-per-mile car insurance program. Allstate charges you a base rate per day for car insurance and then cents per mile that you drive per day. To track your miles with Milewise, drivers can either use a device that plugs into their car’s diagnostics port or the Allstate mobile app.
Milewise is currently available in Delaware, Idaho, Illinois, Indiana, Maryland, New Jersey, Ohio, Oregon, Texas, Virginia, Washington and West Virginia.
You can learn more about car insurance with Allstate by reading Allstate reviews.
Low-mileage drivers can take advantage of Smartmiles from Nationwide. Smartmiles offers drivers a flexible monthly car insurance rate that depends on how much you drive each month. With Smartmiles, you pay a base rate per month and then cents per mile.
To learn more about car insurance with Nationwide, you can read Nationwide reviews written by policyholders.
Do I qualify for low-mileage car insurance?
Car insurance companies offer low-mileage car insurance discounts that are based on the number of miles you drive. All companies have different thresholds and mileage caps that determine if you qualify for a low-mileage discount. Typically if you drive under 10,000 miles a year, it’s worth looking into whether you qualify for a low-mileage discount.
How to get a low-mileage car insurance discount
Just like all car insurance companies have different thresholds and mileage caps for determining eligibility for low-mileage car insurance, they also all have their own processes for measuring your mileage.
Often times, you’re not eligible for the low-mileage car insurance discount the first year or policy term you’re with the insurance company. Companies typically measure your mileage for a year or other set term to determine how many miles you drive and issue you a discount when you renew your policy. Your low-mileage car insurance discount amount will likely vary based on how many miles you drive. The less miles you drive, the larger your discount could be.
Your car insurance company could measure the miles you drive by installing a mileage tracker in your car, requiring you to submit frequent odometer readings or by using mileage estimates. If you wish to be considered for a low-mileage discount, a lot of companies require you to fill out an annual mileage form and the company may verify your mileage by using record of your odometer readings from the RMV’s Vehicle Inspection System when available.
Be sure to check with your car insurance company to ensure you know how to get your low-mileage car insurance discount.
If you own an antique or classic car, unfortunately they don’t typically qualify for low-mileage car insurance discounts.
In addition to low-mileage discounts and pay-per-mile car insurance, you can also look into driver tracking programs offered by many car insurance companies. These programs track your driving and offer you a discount based on how you drive. Typically, the programs track things like speed, hard braking, number of miles you drive and what hours of the day you drive.
They often offer you a discount based on your driving habits. Low-mileage drivers could benefit from driver tracking car insurance discounts. Some examples of these programs that track mileage include Progressive Snapshot and State Farm Drive Safe and Save. Not all of these programs measure your miles.
Are you a low-mileage driver? Let us know how you save money on low-mileage car insurance by leaving a comment below!
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