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, Metromile, Mile Auto, Nationwide, and USAA.
How mileage affects car insurance premiums
Mileage is one of many factors that impacts 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. This higher level of risk will result in higher car insurance rates
Alternatively, if you’re a retiree, college student, or remote worker and you don’t drive all that often, you’re less likely to file a claim with your insurance company, and you might qualify for low-mileage car insurance or a low-mileage discount.
Our insurance experts compared the average annual premium for drivers based on age group and annual mileage. In every age group, drivers with a lower-than-average annual mileage paid less than high-mileage drivers:
| Age group | 7,000 miles or less | 7,000 to 15,000 miles | 15,000 miles or more |
|---|---|---|---|
| 25 and under | $2,023 | $2,158 | $2,196 |
| 26 to 54 | $1,566 | $1,676 | $1,715 |
| 55+ | $1,217 | $1,435 | $1,519 |
| All | $1,623 | $1,767 | $1,805 |
Mileage makes the biggest difference for drivers over the age of 55. In this age category, low-mileage drivers pay approximately 18% less for coverage than drivers with an average annual mileage.
Keep in Mind: Mileage is just one factor in the cost of car insurance. Your driving record, driving history, credit score, ZIP code, and age will all have a bigger impact on your premiums.
Low-mileage drivers
If you drive less than 7,000 miles per year, you’re considered a low-mileage driver. 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 mileage for Americans in every age group1:
- 16 to 19: 7,624
- 20 to 34: 15,098
- 35 to 54: 15,291
- 55 to 64: 11,972
- 65+: 7,646
Low-mileage car insurance and low-mileage discounts
When you get an auto insurance quote, the insurance company will ask you to estimate your annual mileage. While they’ll take that number into account when calculating your premiums, it will only have a small effect on how much you pay for monthly coverage. Most companies won’t give low-mileage drivers a direct discount based on their self-reported mileage.
Instead, car insurance companies that offer low-mileage car insurance or low-mileage discounts will use the following programs or methods to track your mileage:
- Pay-per-mile car insurance: Also referred to as “pay-as-you-go car insurance,” a pay-per-mile auto insurance policy has a monthly base rate plus a per-mile rate for each mile you drive. This means your premium will change on a monthly basis. Also, some pay-per-mile car insurance programs include road trip exceptions if you occasionally want to hit the road for a longer trek.
- Telematics program: A telematics program, also referred to as a usage-based discount, will reward safe driving and low mileage with a discount. Your insurance company will have you download an app or install a telematics device on your vehicle that will track your driving habits and mileage. Depending on how much you drive and your driving behavior, you might see a drop in your car insurance costs.
- Low-mileage discount: Direct low-mileage discounts are somewhat rare, but a few car insurance companies offer them, typically to drivers who drive 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 | Varies | 7,500 miles or less | Contact an American Family agent |
| Auto-Owners | Low-mileage discount | Varies | 10,000 miles or less | Upload a photo of your vehicle’s odometer |
| 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 |
| Metromile | Pay-per-mile insurance | 47% | 10,000 miles or less | Purchase an insurance policy through Metromile |
| 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 |
*Estimated discounts are based on insurance providers’ 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 car insurance discounts to customers who log fewer miles annually than the average driver.
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, you can:
- Get a telematics device: Most companies—including those without low-mileage discounts—allow safe drivers to lower their auto insurance rates by tracking their driving 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.
FAQ
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Where is Mile Auto available?
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What companies offer pay-per-mile insurance?
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Do I have to take a picture of my odometer to receive a low-mileage discount?
Methodology
Our editorial team analyzed quoting data from over 55,000 real Jerry customers to determine the average annual premium for drivers in three mileage categories (7,000 miles per year or less, 7,001 to 15,000 miles per year, and over 15,000 miles per year) as well as the percentage increase between low-mileage, average, and high-mileage drivers.
Source
Hillary Kobayashi is an insurance writer and editor specializing in insurance and finance topics. Hillary’s mission is to use her knowledge and love of education to help car owners better understand how they can save time and money on car ownership. The articles Hillary has published for Jerry span topics from state-specific bill of sale requirements to SR-22 insurance information. Prior to joining Jerry, Hillary spent over ten years in education at Pacific University and the University of Oregon.
Expert insurance writer and editor Amy Bobinger specializes in car repair, car maintenance, and car insurance. Amy is passionate about creating content that helps consumers navigate challenges related to car ownership and achieve financial success in areas relating to cars. Amy has over 10 years of writing and editing experience. After several years as a freelance writer, Amy spent four years as an editing fellow at WikiHow, where she co-authored over 600 articles on topics including car maintenance and home ownership. Since joining Jerry’s editorial team in 2022, Amy has edited over 2,500 articles on car insurance, state driving laws, and car repair and maintenance.
