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The best low-mileage car insurance discounts come from Metromile, Nationwide, and State Farm, which offer rates up to 50% lower than a standard policy.
To get cheap low-mileage car insurance, most companies require drivers to put less than 10,000 miles on their vehicles per year.
| Insurance Company | Rank | Savings Potential | A.M. Best | Who Qualifies? |
|---|---|---|---|---|
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#1 | 50% | A- | Drivers who travel fewer than 10,000 miles yearly. |
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#2 | 40% | A+ | Drivers enrolled in their SmartMiles program. |
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#3 | 30% | A++ | Low-mileage drivers using Drive Safe & Save. |
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#4 | 25% | A+ | Drivers with Milewise accounts. |
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#5 | 25% | A+ | Drivers participating in the Snapshot program. |
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#6 | 20% | A++ | Drivers who drive significantly below average annually. |
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#7 | 20% | A | Drivers with usage-based tracking devices. |
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#8 | 18% | A | Drivers enrolled in KnowYourDrive program. |
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#9 | 15% | A++ | Drivers using telematics and tracking options. |
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#10 | 15% | A | Drivers who report low annual mileage. |
Read on to learn how to find the best low-mileage car insurance companies no matter where you live. Then, enter your ZIP code into our free comparison tool to see the best auto insurance for low-mileage drivers in your area.
What You Should Know
- Insurance companies offer discounted rates to low-mileage drivers
- Auto insurance rates for low-mileage drivers start at $120 per month
- Low-mileage drivers can also save with telematics car insurance
Low-mileage drivers should also consider signing up for either a usage-based (UBI) program or a pay-per-mile policy. These insurance programs can help low-mileage drivers get the lowest rates possible.
How to Qualify for a Low-Mileage Car Insurance Discount
Low-mileage auto insurance discounts are available to drivers who put fewer miles than average on their cars. While every company is different, you’ll probably qualify for discounted insurance if you drive fewer than 10,000 miles annually.
Some of the top car insurance companies that customers recommend offer low-mileage auto insurance discounts because people who drive less are less likely to get into an accident. To qualify for a low-mileage car insurance discount, follow these steps:
- Check Your Annual Mileage: Most insurers define "low mileage" as driving below a specific threshold, often between 7,500 and 12,000 miles per year.
- Enroll in a Mileage-Based Program: Some insurers offer pay-per-mile or usage-based programs that track your driving habits via a mobile app or telematics device.
- Submit Proof of Mileage: Your insurer may require odometer readings, vehicle inspections, or app-based tracking to verify your annual mileage.
- Choose the Right Policy: Some insurers offer better low-mileage discounts than others, so compare policies to find the best savings.
- Maintain a Clean Driving Record: While low mileage helps, a good driving record can further enhance your discount eligibility.
Many insurance companies don’t offer a specific low-mileage discount. Instead, they automatically apply savings depending on your mileage. If you’re unsure about your low-mileage savings, make sure to check with a representative from your company.
Best Car Insurance Companies for Low-Mileage Discounts
Several car insurance companies cater to low-mileage drivers with significant discounts and specialized programs. Here are some of the top options:
- Metromile: Metromile offers pay-per-mile insurance, ideal for drivers who log fewer than 10,000 miles per year. Learn how to qualify in our Metromile insurance review.
- Nationwide SmartMiles: SmartMiles by Nationwide is a flexible pay-per-mile program that adjusts monthly premiums based on actual mileage. Read our Nationwide car insurance review to learn more.
- Allstate Milewise: Milewise is one of two Allstate programs low-mileage drivers can use to save. To see if Milewise is the best option for you, read our Allstate car insurance review.
- State Farm Drive Safe & Save: Drive Safe & Save is a program that offers discounts to drivers who use telematics to track their mileage and driving habits. See more details in our State Farm car insurance review.
- Liberty Mutual RightTrack: Liberty Mutual rewards safe and infrequent drivers with personalized discounts based on driving behavior. Learn more about RightTrack in our car insurance review of Liberty Mutual.
One of the best ways to decide which company has the best car insurance for low-mileage drivers is to look at rates. You can compare rates with the best cheap low-mileage car insurance companies below.
As you can see above, it isn’t difficult to find affordable low-mileage car insurance when you shop at the right company. However, you’ll have an easier time if you have a clean driving record.
Your annual mileage is just one part of how insurance companies decide how much to charge you. While car insurance for low-mileage drivers is a great way to save, there are plenty of other ways to lower your insurance rates.
Other Ways for Low-Mileage Drivers to Save
In addition to low-mileage discounts, you can use the top ways customers save money on their car insurance to reduce car insurance costs if you don’t drive often.
First, you can use methods that insurance experts recommend for all drivers, no matter their annual mileage, including bundling policies. Most companies offer a discount for purchasing more than one policy, like auto and home insurance.
If you’re struggling to find affordable rates, lowering your coverage to the least amount possible will help you save. Choosing a higher deductible will also lower your monthly premiums. Of course, you should also compare rates with multiple companies before you choose a policy.
However, it can be hard to see what you might save with a low-mileage discount just by getting a quote. That’s why you should also compare low-mileage discounts first to see which companies have the best savings.
Usage-Based Insurance
Usage-based insurance (UBI) is a type of auto insurance where premiums are based on how you drive rather than traditional factors like age, location, and driving history.
With UBI, insurers track driving habits using telematics technology, which collects data on factors such as mileage, speed, braking patterns, acceleration, and time of day you drive.
To participate in a UBI program, drivers usually install a telematics device in their vehicle or use a mobile app that records driving behavior. Insurers then analyze the data and adjust premiums accordingly. Safe driving habits can lead to lower rates, while risky behaviors may result in higher costs.
Pay-Per-Mile Car Insurance
Pay-per-mile insurance or pay-as-you-go auto insurance is a type of usage-based auto insurance where your premium is primarily based on the number of miles you drive.
Unlike traditional policies with fixed monthly rates, pay-per-mile insurance charges a base rate plus a per-mile fee. Pay-per-mile auto insurance plans calculate rates with three factors:
- Base Rate: You pay a fixed monthly fee that covers essential coverages like liability, collision, and comprehensive insurance.
- Per-Mile Rate: You'll also get charge for each mile you drive. This rate varies by insurer and is usually a few cents per mile.
- Tracking Mileage: Insurers track your miles using a telematics device installed in your car or a mobile app.
This makes it an ideal option for low-mileage drivers who want to save on insurance costs. However, a pay-as-you-go car insurance policy is not a good idea for drivers with higher annual mileage.
Find the Best Low-Mileage Car Insurance Discounts Today
If you've found yourself wondering why car insurance is so expensive, you can lower your rates with low-mileage discounts.
Getting the best low-mileage car insurance discounts doesn’t have to be hard when you spend a little time exploring your options. Some companies, like Metromile, offer plans specifically crafted for low-mileage drivers, while others offer savings through UBI programs.
Low-mileage drivers, we've got your back. 😉 pic.twitter.com/OjPNAl3aw5
— Metromile (@Metromile) June 19, 2019
Now that you have an idea of where to find the best auto insurance discounts for low-mileage drivers, your next step should be to compare rates. Enter your ZIP code into our free comparison tool today to see the cheapest rates where you live.
Frequently Asked Questions
What is a low-mileage car insurance discount?
A low-mileage car insurance discount is a unique way for low-mileage drivers to save on their coverage. While even some of the best car insurance companies don’t always offer a specific low-mileage discount, most automatically lower rates.
Does mileage affect car insurance rates?
Unless your insurance company asks for your mileage or has a way to track how much you drive, driving less won’t change your rates. If you want to know how low mileage impacts car insurance rates, you’d have to sign up for a specific low-mileage plan.
How much is a low-mileage car insurance discount?
You can save up to 50% by shopping at companies that specifically sell low-mileage products like Metromile, but most providers offer savings of about 25%. The Progressive low-mileage discount is up to 25%, while the Geico low-mileage discount is up to 15%. Get a better idea about how Progressive's low-mileage rates work in our Progressive car insurance review.
How much does low-mileage car insurance cost?
While the amount you pay for car insurance depends on a variety of factors, low-mileage coverage starts at $120 per month. However, you should always compare quotes to find the lowest prices in your area. To get started, enter your ZIP code into our free comparison tool.
What is pay-per-mile auto insurance?
Pay-per-mile insurance is a type of auto insurance where the cost is based on the number of miles you drive, combining a fixed base rate with a per-mile fee. Finding cheap pay-as-you-go car insurance is ideal for low-mileage drivers who want to pay just for the miles they actually drive.
What is usage-based insurance?
Usage-based insurance (UBI) is a type of auto insurance where premiums are determined by driving behavior, such as mileage, speed, braking, and time of day, using telematics technology. Safe or low-mileage drivers can save money, while riskier driving habits may lead to higher costs.
How many miles is considered low mileage?
When you want to know how low mileage impacts car insurance, the first thing to do is to determine if you're actually considered a low-mileage driver. All companies have their own number, but most providers consider annual mileage under 10,000 miles low enough to qualify for a low-mileage discount.
What happens if you underestimate your annual mileage?
Underestimating your mileage to get a discount is considered insurance fraud and can land you in trouble. The most likely outcome is that you’ll lose your discount, but you could face more serious consequences.
How do insurance companies track your mileage?
The most common way insurance companies track your mileage is through self-reporting by sending in pictures of your odometer. Other common methods include installing a tracking device in your vehicle. If you're interested in tracking your mileage, try the best car insurance companies that use tracking devices.
What are the benefits of low-mileage insurance?
The main benefit of getting low-mileage insurance is the savings. Drivers can save up to 50% by signing up for low-mileage car insurance.