How to Get a Low-Mileage Car Insurance Discount

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Written by Mandy Sleight Edited by Lequita Westbrooks

Updated May 23, 2024

The average American drives 11,278 miles annually, according to the latest data from the Federal Highway Administration (FHWA), but if you drive fewer miles, you might be able to save on your car insurance.

Many insurers offer a low-mileage discount if you drive below a certain mileage per year. For example, if you drive less than 7,500 per year, State Farm will give you a low-mileage discount.

This article explains how low-mileage drivers can save on car insurance, which insurers offer the discount, and how to get it.

Low-Mileage Car Insurance Discount Explained

Some auto insurers offer a low-mileage car insurance discount to people who drive fewer than a specified number of miles per year. The mileage and discount savings vary by company.

For example, State Farm customers who drive fewer than 7,500 annually are eligible for the discount, but you have to ask for the discount and provide your vehicle’s odometer reading to your agent to get it. The discount amount varies by different factors, like the type of car you drive and your driving history.

State Farm will periodically send a request to update your vehicle’s mileage to keep the discount on your insurance policy. You’ll lose the discount if your odometer reading shows you’ve driven more than 7,500 in a year.

Remote workers, people with short commutes to work or school, and retirees might be good candidates for low-mileage insurance.

In the next section, we’ll walk you through the steps to get the low-mileage discount.

How to Get a Low-Mileage Discount

A low-mileage discount can lower your auto premium and reduce your risk of accidents since you drive less. The steps to get a low-mileage discount might vary, but in general, here’s how to get the discount:

1. Find out your insurer’s eligibility requirements: A certain annual mileage is typically the only requirement, but each insurer’s maximum mileage might vary.
2. Ask to apply the discount to your policy: Your insurer will need your current odometer reading to do so.
3. Monitor your mileage: Keep an eye on your mileage throughout the year to make sure you stay under the mileage limit.
4. Provide an updated reading when your company asks for it: If you don’t, you’ll lose the discount.

Keep in mind that auto insurance discounts vary by state and insurance company. Check out the next section for the best insurers with a low-mileage discount.

5 Best Auto Insurers Offering Low-Mileage Discounts

Not every insurance company offers a low-mileage discount, but the table below highlights several insurers that do.

The five best auto insurers offering a low-mileage discount are American Family, USAA, State Farm, National General, and Safeco, according to our research. Most company websites might not show a specific discount amount since where you live, your vehicle type, and your driving history factor into the amount you can save.

The best way to determine how much the discount will save you is to contact your insurance company to have it added to your policy.

Other Cheap Car Insurance Options for Low-Mileage Drivers

Alternatives might be available if your insurer doesn’t offer a low-mileage discount. Ask your insurance company if it offers pay-per-mile car insurance or a telematics program that tracks your driving habits and provides savings for safe driving behavior.

Here’s more detail on both options.

Pay-per-mile insurance

Pay-per-mile insurance offers the same coverage as a standard car insurance policy, but your insurer calculates your premiums differently. Instead of paying a flat monthly insurance rate, you’ll pay a base rate plus a mileage rate for every mile you drive. The less you drive, the lower your total auto insurance premium.

Pay-per-mile programs are a good idea if you’re a low-mileage driver and don’t need to stick to a strict budget. Your rate will vary based on your mileage, making it ideal for remote workers, retirees, and people with an extra car or access to public transportation. But a standard policy might be better if you drive a lot of miles, as the fluctuating rates could cost you more.

Insurers offering pay-per-mile insurance include:

• Allstate
• Nationwide
• Metromile
• Mile Auto

Usage-based insurance

Usage-based programs require a telematics device that tracks your driving habits. Most insurers offering usage-based insurance programs can track you through a mobile app that runs in the background while you drive.

The smartphone app or device tracks the actual miles you drive per trip, plus factors like braking, speeding, cornering, time of day, and phone usage. You might get a lower insurance rate if you’re a safe driver who doesn’t drive much, go over the speed limit, use your phone while driving, or drive late at night.

Keep in mind that some companies will raise your premium for risky driving. If you speed above the posted limit, have a night job, or brake or accelerate quickly, you might not be a good fit for usage-based car insurance programs. These programs are available through:

• State Farm’s Drive Safe & Save
• Nationwide SmartRide
• Allstate Drivewise
• Farmers Signal
• Liberty Mutual and Safeco RightTrack
• Progressive Snapshot
• The Hartford TrueLane
• Travelers IntelliDrive
• Chubb Safelane

If you’re considering a usage-based program, it’s a good idea to ask about habits the insurer tracks and if your premium can go up for certain driving behaviors. You can track your habits through the smartphone app to know if you need to make adjustments when behind the wheel to avoid higher rates.

The Cheapest Auto Insurance Companies for Low-Mileage Drivers

Some car insurance companies offer cheaper rates if you drive fewer miles than the average.

The table below shows the cheapest insurers for low-mileage drivers who drive less than 10,000 miles per year. Keep in mind that the average monthly insurance rate is for a standard insurance policy, not for telematics or discount programs.

Mile Auto and Farmers average less than $100 per month, based on our analysis. If you drive fewer miles than average, you might save money by comparing car insurance quotes from the companies on this list.

Low-Mileage Discount FAQs

Here are answers to the most common questions about low-mileage discounts for car insurance.

Is car insurance cheaper if you drive fewer miles?

It depends. Car insurance can be cheaper if you drive fewer miles, but it depends on the insurer. Some companies don’t factor mileage into insurance rates, so driving fewer miles won’t save you money. If you don’t drive much, consider getting a quote from an insurer that does, like American Family, State Farm, or National General.

How do insurance companies verify your mileage?

Insurance companies use different ways to verify mileage. For instance, you might have to complete an odometer verification form or upload a photo of your car’s current mileage. If you participate in a telematics program, your insurer can track miles driven through the device or mobile app.

What’s the best low-mileage car insurance company?

Insurance rates vary significantly by company. Factors like your driving and claims history, ZIP code, and vehicle type determine your premiums. A car insurance comparison site can help you find the best low-mileage car insurance company more easily.

What if your mileage increases during the policy period?

Mileage increases can affect your premium, depending on the increased amount and company criteria. For example, driving more shouldn’t affect your premium if you stay below that maximum mileage to qualify for the discount. But if you go over it, your premium might increase at the next renewal.

What annual mileage makes your car insurance the cheapest?

It depends on the insurance company and your policy. If you have pay-per-mile insurance, the fewer miles you drive, the cheaper your premium. But if you have a low-mileage discount, your rate will stay the same as long as you stay below the maximum mileage for the discount.

Data Methodology

Data scientists at Compare.com analyzed more than 50 million real-time auto insurance quotes from more than 75 partner insurers in order to compile the rates and statistics seen in this article. Compare.com’s auto insurance data includes coverage analysis and details on drivers’ vehicles, driving records, insurance histories, and demographic information.

All the rates listed in this article have been collected from a combination of real Compare.com quotes and external insurance rate data gathered in collaboration with Quadrant Information Services. Compare.com uses these observations to provide readers with insights into how auto insurance companies determine their premiums.

Sources

1. Federal Highway Administration, “Highway Statistics 2022,” Accessed May 9, 2024.

Mandy Sleight Auto Insurance Writer

Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She is a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications. She uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content to help readers make smarter insurance choices that have a positive effect on their budgets and finances.