If you put minimal miles on your vehicle each year, then you could save money by opting for car insurance for low-mileage drivers. This means getting major auto insurance discounts based on the fact you are a low-mileage driver.
Many top insurance providers offer low mileage discounts that could save you hundreds of dollars per year. New insurers are entering the marketplace that offers coverage solely based on a person’s driving metrics and total miles driven.
What is Low Mileage Car Insurance?
Low mileage car insurance provides discounts to drivers who use their vehicles less than average. If you drive fewer than a specified number of miles annually, usually somewhere between 5,000 and 15,000 miles depending on the insurer, you may qualify for lower insurance rates.
Insurance companies offer these discounts under the assumption that people who drive less pose a reduced risk on the roads. With fewer miles come fewer chances for accidents and claims, allowing providers to pass savings on to customers.
How Do Car Insurance Discounts for Low-Mileage Drivers Work?
When applying for insurance, ask your provider about low-mileage programs. Be prepared to share your estimated annual mileage and proof to substantiate it.
Insurance agents will use your projections to generate quotes reflecting applicable discounts. If estimates prove inaccurate during policy renewals, discounts get adjusted using verified annual mileage.
Here are some best practices when obtaining low-mileage car insurance:
- Calculate realistic mileage estimates: Take the time to consider your average weekly and monthly driving when estimating annual mileage. Ballpark figures put your discounts in jeopardy.
- Keep accurate odometer records: Note your odometer reading at each fill-up and policy renewal to keep close mileage tabs.
- Invest in a mileage tracking app: Apps like JerryCan, Drivvo, and MileIQ automatically log trips and miles to simplify recording.
- Share vehicle servicing records: Offer copies of oil change invoices or inspection reports to corroborate mileage claims.
- Install telematics if required: Comply with any telematics requirements so insurers can seamlessly monitor driving data.
- Provide annual odometer photos: Supply visual evidence like photos of your odometer to substantiate mileage reports.
- Adjust estimates if needed: Keep agents abreast of any changes in driving habits that alter projected mileage.
Sticking to these best practices ensures you lock in all eligible low-mileage savings.
How Much Could You Save On a Low-Mileage Car Insurance Plan?
Savings vary widely, but some companies offer discounts of up to 30% for driving under certain mileage thresholds. With the average annual premium of around $1,500, that could equal over $400 in savings per year.
To give you an idea of what’s possible, here are some examples of low mileage discounts from major insurers:
- State Farm: Up to 30% discount for driving under 7,500 miles per year
- GEICO: Up to 25% off for driving 5,000 miles or less annually
- Allstate: Up to 20% off for driving under 10,000 miles per year
- Progressive: Average savings of $100 per year when you drive less than average
- USAA: Up to 60% discount for driving less than 3,000 miles annually
As you can see, savings opportunities abound for low-mileage drivers. Just be sure to discuss your driving habits with agents to find the best low mileage insurer.
How Insurers Track Mileage
Insurers use a few methods to track and verify customers’ annual mileage. Common approaches include:
- Annual mileage self-reporting: Many companies have customers self-report odometer readings each year upon policy renewal. This mileage goes on record so discounts can adjust accordingly.
- Telematics devices: Insurers may collect mileage data through a plug-in device or mobile app. These telematics track driving tendencies like mileage, location, speed, acceleration, cornering, braking, and more.
- Mileage verification services: Some insurance providers work with third-party mileage verification services. These services confidentially access odometer readings from recent vehicle servicing to confirm annual mileage.
No matter their tracking method, insurers want to incentivize and verify that a driver is really driving less. Allowing customers to self-report leaves room for error, while telematics and mileage verification offer more reliable oversight.
Pay-Per-Mile Car Insurance Options
Along with discounts for low mileage, usage-based “pay-per-mile” options are growing in availability. Pay-per-mile insurance charges you based on actual miles driven, so lighter drivers get better rates.
Here’s an overview of some top pay-per-mile providers and how their coverage works:
Metromile
With Metromile, you pay a low monthly base rate plus a per-mile rate of usually between $0.05-$0.20 per mile. As the country’s largest pay-per-mile insurer, Metromile offers drivers an average annual savings of $750.
To track mileage, Metromile installs an automated “Metromile Pulse” in policyholders’ cars. This device connects to the vehicle’s onboard diagnostics port to capture metrics. Customers can also view driving details via the Metromile mobile app.
Mile Auto
Mile Auto bills itself as an “anti-insurance” company offering straightforward, customizable pay-per-mile insurance. Monthly rates combine a fixed membership fee with a per-mile charge of around $0.45-$0.65 per mile.
Drivers simply download the Mile Auto app to share odometer images on policy renewals. Alternatively, they can permit Mile Auto electronic access to the automaker’s connected car data.
Esurance DriveSense
Allstate-owned Esurance provides DriveSense, which charges per mile for drivers traveling under 30 miles daily. DriveSense offers enlarged savings for customers driving even less.
Once enrolled, Esurance emails a DriveSense device to plug into your car. This device transmits mileage data so Esurance can calculate usage-based premiums.
Root Insurance
Root Insurance pricing is also driven (pun intended) by individual driving habits. To gather data, Root applicants download the Root app and take test drives with their smartphone. These allow Root to assess driving and determine pay-per-mile premiums.
Root also uses smartphone-synced telematics after you become a customer to continually price policies based on driving behaviors. For safe, low-mileage drivers, savings can exceed 50%.
Pay-per-mile insurance offers guaranteed savings versus traditional premiums. Before choosing a usage-based provider, compare features across Metromile, Mile Auto, Esurance DriveSense, and Root Insurance.
Insurers With the Best Low Mileage Car Insurance Discounts
Do you wonder which auto insurance providers offer the most mileage-related savings? While discounts vary regionally, these top insurers consistently provide strong incentives for less driving:
State Farm
Discount Details: Up to 30% off premiums for driving under 7,500 miles annually
State Farm satisfies savvy shoppers by combining affordable base rates with generous low mileage savings. Qualifying policyholders can get discounts of up to 30% for keeping their annual odometer count below 7,500 miles.
State Farm also offers payment flexibility like pay-by-mile options for extremely light drivers along with excellent student and new vehicle discounts. Though not the cheapest by default, State Farm should top your list to compare against other carriers.
USAA
Discount Details: Up to 60% off for driving less than 3,000 miles per year
As the gold standard for auto insurance discounts, USAA goes even further than State Farm to reward low mileage. Drivers can score discounts of up to 60% by driving under 3,000 miles annually. Rates continue falling across higher mileage brackets — a dream for military members who sporadically use personal vehicles.
Beyond low mileage savings, USAA provides best-in-class customer satisfaction with hassle-free claims experiences aided by account credits, rental reimbursement, and accident forgiveness. Unfortunately, membership restrictions limit enrollment eligibility for USAA insurance policies.
Travelers Auto Insurance
Discount Details: Up to 20% off for under 20,000 annual miles
Travelers auto insurance presents another excellent option thanks to competitive base rates and a 20% discount for driving below 20,000 yearly miles. Travelers Insurance Company also makes a big impression with accident forgiveness, new car replacements, and diminishing deductibles.
Travelers Insurance manages risk exceptionally well across driver profiles. Focusing beyond just mileage and diving deeper into full usage habits helps
Factoring Mileage Into Quotes
Most standard insurance companies don’t ask for mileage information when generating initial quotes. Agents default to average driving assumptions during this process.
However, you can still emphasize your low-mileage habits when chatting with agents:
- Highlight annual miles: Provide clear visibility into your approximate yearly mileage. Explain you drive x number of miles per week/month.
- Ask about discounts: Find out what low mileage discounts the company offers. Inquire about eligibility thresholds and potential savings amounts.
- Share driving rationale: Briefly explain the car usage scenario substantiating your low mileage. Maybe you work from home, live downtown, or have supplementary vehicles. Giving rationale can influence risk assessment.
- Volunteer documentation: You should offer upfront historical mileage verification like old invoices or policy documents. This showcases your intent to claim discounts.
- Request accurate quotes: Ask agents to incorporate your mileage data into new quotes. Compare quotes and coverage options that reflect any eligible low mileage savings.
Doing your due diligence to supply annual mileage exhibits you deserve discounted rates for driving less.
The Final Word On Car Insurance For Low Mileage Drivers
If you drive less than 10,000 a year then you should take advantage of discounts offered to low mileage drivers. In many cases you can save over $500 a year, just keeping your annual mileage driven under a certain threshold.
When searching for car insurance for low-mileage drivers, make sure you compare at least five quotes from both telematics-based insurers to larger companies like Progressive that offer big discounts.
To compare the best quotes for low mileage drivers where you live, enter your zip code and fill out a free five-minute application. Save hundreds on low-mileage auto insurance today and get quality coverage for less.