Here’s What You Need to Know
- Low mileage car insurance costs $1,400 per year ($116/mo)
- The top three low mileage car insurance companies are Metromile, USAA, and GEICO
- Metromile and Nationwide offer the best pay-per-mile insurance programs
Do you have a short commute, take public transportation, or work from home? Then, you may qualify for cheap car insurance rates with low mileage car insurance.
While the average driver puts between 13,500 and 14,500 miles on their car per year, low mileage drivers can save around $300 or more on car insurance if they drive 6,000 miles or less annually. If you drive even fewer miles, you may want to consider pay-per-mile car insurance.
Depending on your needs, you may be able to earn discounts with your current company or reduce your rates by switching to pay-per-mile insurance.
Keep reading to learn the difference between pay-per-mile insurance and low mileage discounts and how you can qualify for low mileage car insurance. In addition, we found the top five cheapest low mileage car insurance companies to help you compare quotes and get the best coverage for your lifestyle.
The Best Low Mileage Car Insurance Companies
The average annual cost of car insurance for those who drive less than 6,000 miles per year is $1,400 ($116/mo). This is $300 less than the national average of $1,738 per year.
However, if you drive less than 250 miles per day, you can qualify for even lower rates. So, to find the best car insurance by mileage, we compared companies offering cheaper-than-average low mileage rates with those providing pay-per-mile programs:
|Low Mileage Car Insurance Company||Car Insurance Rates for 6,000 Annual Miles||Pay-Per-Mile Car Insurance Rates||A.M. Best Rating|
|Metromile||$780||$29/mo + $0.06/mile||-|
|Nationwide||$1,423||$35/mo + $0.07/mile||A+|
Metromile offers the most affordable car insurance rates for low mileage drivers, but the company is only available in eight states. USAA insurance offers the next cheapest rates but is only available to military members and their families.
However, the average driver can still earn affordable car insurance rates by mileage with GEICO, State Farm, and Nationwide.
Nationwide and Metromile are the only companies on our list to offer cheap low mileage car insurance rates and a pay-per-mile program for those who drive less than 250 miles per day.
If Metromile isn’t available in your state, the Nationwide SmartMiles program is available in 40 states. Nationwide also offers an additional 10% discount for drivers who sign up for SmartMiles. Read our Nationwide insurance review to learn more.
What companies offer low mileage car insurance discounts?
Most insurance companies will offer discounted rates to policyholders who drive less than 10,000 miles per year. So, update your current policy to match your annual mileage to ensure you get the lowest rates possible.
Your insurance company may also offer discounts if you install a car tracking device that logs your driving habits, speed, and mileage. You can earn this discount if you have coverage with the following car insurance companies:
- Allstate MileWise
- Liberty Mutual ByMile
- Nationwide SmartMiles
- Progressive Snapshot
- State Farm Drive Safe & Save
- GEICO DriveEasy
State Farm, GEICO, and Nationwide are among the top five low mileage car insurance companies, but you don’t have to switch companies for discounts if you already carry Allstate, Progressive, or Liberty Mutual car insurance.
However, it’s in your best interest to compare car insurance quotes every few months to guarantee you aren’t overpaying for coverage, especially when you don’t drive very often. Start by comparing quotes from three local companies to the insurers on our list to see which provides the best car insurance by mileage in your state.
How to Qualify for Low Mileage Car Insurance
Car insurance companies offer low mileage car insurance discounts based on the number of miles you drive. Car insurance is cheaper when you drive less, but all companies have different thresholds and mileage caps that determine if you qualify for a low mileage discount.
What do insurance companies consider low mileage? That depends on the company. Most major car insurance companies will offer discounted rates to policyholders who drive 12,000 miles per year or less. Others, like GEICO, will start discounting rates at 7,500 miles per year.
Some insurance companies will track your mileage with a telematics system installed in your vehicle. Other companies will ask for your annual mileage when you renew your policy.
However, you will only qualify for the lowest rates if you drive less than 6,000 miles per year. If you drive significantly less than that, you may consider a pay-per-mille policy over low mileage discounts to save even more money on car insurance.
What is the difference between low mileage vs. pay-per-mile car insurance?
Pay-per-mile insurance is different from a low mileage discount offered by auto insurance companies. It allows you to pay for coverage based on how many miles per day you drive. This type of insurance is best for infrequent drivers, including those who work from home, college students, and those who live in big cities with convenient public transportation.
Unlike low mileage car insurance, which earns discounts on annual rates, pay-per-mile insurance policies have monthly base rates determined by where you live and the kind of car you drive. Then, mileage costs are calculated by cents-per-mile and added to the base rate, often saving drivers between $300-$500 per year based on how often they drive.
What You Need to Know About Car Insurance By Mileage
Car insurance by mileage can help drivers with poor credit or bad driving records reduce their rates. If you drive less, you're statistically less likely to get into a car accident and file an insurance claim. As a reward, you may be eligible for lower premiums with a low mileage discount or pay-per-mile insurance policy.
Metromile offers the cheapest pay-per-mile car insurance, while USAA provides the most affordable low mileage car insurance. However, USAA is only available to active and retired military members and their families.
The average driver will get the best low mileage car insurance rates with GEICO, but you may qualify for more discounts with Nationwide depending on how often you drive.
However, 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. Depending on which company you choose, you may not be eligible for the low mileage car insurance discount in the first year of your policy.
Compare car insurance quotes from different insurers to see which company can offer you the most affordable car insurance by mileage.