If you’re like most people, you’re always looking for ways to save money. Therefore, you can consider purchasing a low-mileage car insurance policy.
Low-mileage policies cater to drivers who typically do not drive as much as the average person, offering significant savings over standard policies.
So, if you are looking to save on your premiums, a low-mileage auto insurance policy may be the right option for you. Here are some tips on switching to low-mileage auto insurance and starting to save today.
What Is Considered Low-Mileage for Car Insurance?
You should keep in mind that there is no definitive answer to the purpose of low mileage for car insurance. As a matter of fact, many insurance providers have their definition of what qualifies as low mileage.
Still, we can tell you that a good general guideline is that drivers who log 7,500 miles per year, or 20 miles per day, are typically considered low-mileage drivers.
This means that if you drive less than this distance, you may be eligible for a lower premium.
Car Insurance Mileage Brackets
Insurance companies take a few things into account when calculating your rates, and one of those is annual mileage. In fact, most companies have mileage brackets to determine if you drive an average amount.
Generally speaking, car insurance companies that use annual mileage to calculate rates typically break mileage down into three categories: low, average, and high.
While some companies use a new rule of considering driving less than 50 miles a day as low mileage, these are the guidelines most companies use:
- high mileage: 40 miles a day or 15,000+ miles annually
- average mileage: 20 miles a day or 7,500–15,000 miles annually
- low mileage: 10 miles a day or less than 7,500 miles annually
All in all, our team estimates that low-mileage drivers save approximately $56 per year on car insurance.
Cheapest Car Insurance for Low-Mileage Drivers
US drivers pay an average of $1,394 for low-mileage car insurance. We know that finding the right car insurance can be a hassle, so we’ve made it easy for you.
In other words, we’ve compiled a list of the cheapest car insurance companies and annual costs for low-mileage drivers:
If you’re looking for the cheapest car insurance for low-mileage drivers, USAA is the best option. However, only active duty and retired military members and their families are eligible for USAA membership and insurance coverage.
Furthermore, GEICO offers the second-lowest rates for this type of policy, with an average representative rate of $1,086 for low-mileage drivers.
State Farm, Nationwide, Travelers, and American Family are also among the cheapest car insurance companies for drivers who don’t rack up a lot of miles.
Best Car Insurance for Low-Mileage Drivers
There are several things companies need to have to be considered the best companies for car coverage for low-mileage drivers, like low rates, good customer service, and a variety of coverage options.
If you are a low-mileage driver, shop around and compare rates from different companies before deciding. The best company for you may not be the same as the best company for someone else.
USAA Low-Mileage Auto Insurance
According to our estimates, USAA ranks as one of the best low-mileage car insurance companies.
Namely, we can assure you that it is the cheapest car insurance company overall and has a reputable customer service record. We also found that in the most recent J.D. Power 2021 U.S. Auto Insurance Study, USAA scored higher than every other provider.
Additionally, in the J.D. Power 2021 U.S. Insurance Shopping Study and the J.D. Power 2021 U.S. Auto Claims Satisfaction Study, USAA again ranked higher than every other car insurance provider.
We liked that USAA offers a unique discount for drivers who don’t drive very much each year. For instance, if you’re 29 years or older, you can get a discount for low-mileage car insurance based on the number of miles you drive each year.
We believe this is a great way to save on your car insurance, so be sure to ask about it when you’re shopping for a policy. You can get a quote online or by calling the company.
- the cheapest option
- reputable customer service record
- strong claims handling scores
- not available to everyone
Low-Mileage Car Insurance: GEICO
If you drive fewer miles than the average person, you may be able to get lower rates on your GEICO auto insurance.
We were disappointed that the company doesn’t offer a specific low-mileage discount, but we learned that premiums take mileage into account.
For example, customers who drive 7,500 miles annually may be eligible for rates that are 27% lower than for those who drive 15,000 miles annually.
Our team also found out that the company offers low-mileage car insurance for seniors at an annual rate of $1,151.
Moreover, we can assure you that GEICO is well-known for providing excellent customer service.
To get a GEICO online quote, go to the company’s website, click the button for the insurance type you want, click “Start Quote,” answer the questions, and wait for your emailed quote. You could be saving money on your car insurance in no time.
- lower rates for those who drive 7,500 miles annually
- you can get a quote online
- A++ financial strength rating from AM Best
- no official GEICO low-mileage discount
State Farm Low-Mileage Auto Insurance
We highly recommend State Farm, as it is another great option for those who don’t drive as often. In other words, if you drive fewer than 7,500 miles per year, you may be eligible for the State Farm low-mileage discount.
Moreover, this discount can help you save on your annual premium, and it varies depending on factors like your driving history and the make and model of your vehicle. All in all, the low-mileage car insurance from State Farm allows drivers to save up to $115 per year on their insurance rates.
Our team found out that these are State Farm’s average annual premium rates based on driver mileage:
- $1,485 for 10,000–15,000 miles
- $1,470 for 7500–10,000 miles
- $1,409 for fewer than 7500 miles
What you might also like is that the company received high scores from J.D. Power for claims satisfaction, overall customer satisfaction, and shopping experience. Apart from offering some of the best car insurance for low-mileage, the company has other benefits, too.
You can get a quote from the company over the phone, online, or in-person with a local agent. State Farm has a wide range of coverage options, so you can tailor your policy to fit your needs.
- several ways to get a quote
- save up to $115 per year
- high scores from J.D. Power for claims satisfaction
- not available in every state
Nationwide Low-Mileage Car Insurance
If you’re looking for car insurance and don’t drive very much, we believe that Nationwide’s SmartMiles program is an excellent option. With rates based on how many miles you drive, SmartMiles drivers save 25% compared to standard policy rates.
Additionally, we learned that if you practice safe driving habits, you may be eligible for an additional 10% discount, apart from the car insurance low-mileage discount.
We were thrilled that once you sign up for the program, you even receive a discount just for enrolling.
Furthermore, if you install a small device on the mobile app on your smartphone or in your car, SmartRide will start keeping track of your driving and measuring things like nighttime driving, hard braking, and fast acceleration.
In addition, good driving habits could lead to even more savings on your Nationwide car insurance premium.
We think that the easiest way to get a quote is to visit their website and request a quote online. You can also call an agent.
- a SmartMiles program
- up to 35% discounts
- available in 46 states
- average customer satisfaction
Travelers Car Insurance for Low Mileage
If you’re a student attending college away from home or simply don’t drive your car often, you could be eligible for special low-mileage discounts from Travelers. That’s reassuring, as we know that the youngest drivers have the highest car insurance rates. Fortunately, in a handful of states, Travelers will extend added discounts if you drive less.
We would also like to mention that to take advantage of these discounts, you’ll need to have your driving habits monitored. Travelers offers a program called IntelliDrive that does just this.
We were delighted to learn that if you agree to have your driving monitored for a while, Travelers takes up to 10% off your premium, so it’s safe to say this is cheap low-mileage car insurance.
On top of that, if you live in a state where Travelers offers this discount and your annual driving miles are 13,000 or less, you could save up another 30% on your premium. You can get a quote by calling an agent or online with your ZIP code.
Unfortunately, Travelers ranked below average in the J.D. Power 2021 U.S. Auto Claims Satisfaction Study and hasn’t received great customer feedback.
- suitable for students attending college away from home
- an IntelliDrive program
- an easy quote process
- below-average claim satisfaction
Auto Insurance for Low-Mileage Drivers: American Family
If you are a low-mileage driver, American Family auto insurance could be a great option for you. Available to policyholders who drive 7,500 or fewer miles per year, the company’s low-mileage discount can save you money.
As per our expert’s opinion, American Family’s customer service isn’t poor, but other providers in our review, like USAA, GEICO, and State Farm, rank higher.
Our team found that, apart from the already mentioned low-mileage car insurance discount, American Family offers a student discount for those under the age of 25 who attend college more than 100 miles away from home.
So, if you’re a student and your car is parked at home, you could save even more on your auto insurance.
With a vast network of agents and a user-friendly online quoting system, it’s easy to get started with American Family.
- a vast network of agents
- 24/7 claims filing
- a user-friendly mobile app
- only serves 19 states
Low-Mileage Car Insurance Summary
If you drive a low-mileage car, be sure to shop around for the best rates on car insurance. We’ve provided some of the cheapest and best companies for low-mileage drivers, but it’s essential to compare quotes and find the company that fits your needs.
Remember, just because you drive a low-mileage car doesn’t mean you have to pay more for car insurance—in fact, you may be able to save by switching providers.
People Also Ask
Is insurance cheaper with lower mileage?
The amount you pay for auto insurance is primarily based on how much you drive. The more time you spend on the road, the higher your premiums will be. If you drive less, you may be eligible for lower rates.
Of course, other factors play into your insurance rates as well, but mileage is one thing to consider if you’re looking to save on your premiums.
Does less annual mileage affect car insurance?
If you drive fewer miles per year, you pose less risk to your insurer. This could lead to a lower car insurance rate. You may be able to get a low-mileage discount from your insurer.
You should also let your insurer know if you’ve recently started driving less. This could help you get a lower rate. If you drive less, you may also want to consider a pay-per-mile insurance plan.
Make sure to shop around and compare rates before you buy car insurance. This will help you get the best deal possible.
How do I insure a car I rarely drive?
If you don’t drive your car often, there are still insurance options available to you. One option is to get pay-as-you-go insurance, which means you only pay for the insurance when you’re actually using the car.
You could also qualify for low-mileage car insurance discounts from some insurers. Whatever route you choose, make sure you’re still fully insured when you are on the road.