Learn About State Farm’s Low Mileage Discount

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Written by Ray Prince Edited by Nick Versaw

Updated June 15th, 2023

If you drive less than 7,500 miles per year, you may be eligible for a discount of up to 30% off your premium through State Farm’s Drive Safe & Save program. According to the NAIC, the average American drives 13,476 miles a year. If you drive less than that, you can be rewarded for it!

This guide will help answer your questions about State Farm‘s low mileage discount program, including its advantages, how it works, and how to enroll.

If your current insurance provider is not offering you a generous low-mileage discount, now may be an excellent time to switch to State Farm or any company offering competitive insurance rates for low-mileage drivers. Shop around for new quotes:

All About State Farm

Founded in 1922, State Farm is the country’s largest insurance provider, with over 80 million policies and counting. They offer a variety of insurance products, including home, auto, health, and commercial insurance. 

One of its biggest draws is its Drive Safe & Save program, which offers insurance discounts for safe driving behavior.

What Is State Farm’s Low Mileage Discount?

State Farm offers car insurance discounts of up to 30% for drivers enrolled in its Drive Safe & Save Program, which is the program the low mileage discount is managed through. Policyholders enjoy an automatic 7-10% guaranteed discount just for signing up, with adjusted discounts of up to 30% toward the end of your policy renewal period (every six months) based on actual driving behavior.

How Does State Farm’s Drive Safe & Save Program Work?

State Farm‘s low mileage discount can be obtained by enrolling in their free Drive Safe & Save program, which rewards drivers for using a GPS-enabled smartphone app or windshield-mounted Bluetooth beacon to track driving behaviors, such as hard braking, acceleration habits, and top speeds. The safer you drive, the higher your discount, with a guaranteed discount offered regardless of the results.

You only need to log on to State Farm‘s website/app and view your dashboard to track your driving information. It provides regular feedback on your driving habits in one easy at-a-glance view, including suggestions on improving performance.

Note: State Farm’s Drive Safe & Save program does not include accidents or traffic tickets. It only collects the number of miles driven and basic driving habits such as how fast you drive, how hard you turn corners, phone usage, and the time of day you drive.

How Does State Farm Verify Low Mileage?

For State Farm to recognize low mileage, you must be enrolled in State Farm’s Drive Safe & Save program, which automatically tracks your mileage. Depending on the number of miles, your discount may increase or decrease. If you drive more than 7,500 miles a year at any point, State Farm reserves the right to rescind the discount, defaulting you back to your regular rate.

Suppose State Farm‘s app and telematics devices do not register your driving activity for a bug or other reason. In that case, you can self-report by providing an odometer reading upon policy renewal. However, you must be enrolled in the program to qualify for the discount.

Remember that other factors affect how low or high your State Farm low mileage discount is. These factors include age, gender, address, vehicle make/model, and driving record. In addition, your account must remain in good standing (e.g., no past due payments and non-problematic driving history) to be eligible.

State Farm works slightly differently than other major auto insurance companies when verifying low mileage. State Farm determines your discount upon each policy renewal period. In contrast, Liberty Mutual‘s RightTrack program’s review period length is 90 days and Allstate‘s DriveWise program uses your first 50 trips to calculate, followed by check-ins every six months. 

Others, like Nationwide’s SmartMiles, are a pay-per-mile car insurance program that offers variable premiums based on the number of miles you drive per month via base rate and variable rate per mile.

Am I Guaranteed a Discount?

You will always receive a discount if you are enrolled in the Drive Safe & Save program. However, you can expect your discount to increase or decrease every six months (upon policy renewal) based on your annual mileage and driving habits recorded through the app.

Benefits of State Farm’s Low Mileage Discount

Here are some advantages of State Farm‘s low mileage discount program:

• Savings: You can earn back a pretty penny with up to 30% off your premium. If your annual premium is $2,100, a savings of $630 is a great deal.
• Encourages safe driving: Enrolling in State Farm’s Drive Safe & Save program may enable you to drive fewer miles and make better decisions. For example, you may now be more likely to ride a bike to work rather than drive. You will also be rewarded for other safe driving behaviors, e.g., limiting nighttime driving and soft acceleration/braking.
• Preserves your vehicle’s condition: Naturally, the less you drive, the less wear and tear your vehicle will have, saving you hundreds (if not thousands) of dollars on repair and replacement costs over the long run.
• Coverage flexibility: You can also save based on how you customize your coverage. For example, if you do not drive a lot, it may encourage you to drop benefits like collision and comprehensive coverage, lowering your insurance premiums even further. However, we encourage you to purchase full coverage over a state minimum liability policy if possible, as a single at-fault car accident could put you on the hook for thousands and thousands of dollars in out-of-pocket costs.

Is State Farm’s Drive Safe & Save Program Right for Me?

Consider your driving habits to determine if State Farm’s Drive Safe & Save Program is right for you. Outside of driving less than 7,500 miles a year, do you mainly drive during the day? Are your acceleration, braking, and cornering abilities honed? Are you strict about not using your phone at a red light?

If you answered yes to any of the above questions, we recommend enrolling in State Farm’s Drive Safe & Save Program.

If you are still determining if the program is right for you, we encourage you to call a State Farm agent to learn more about the program and all the eligibility requirements.

Drive Infrequently, Get Rewarded

Now that you know everything about State Farm’s low mileage discount, it may be an excellent time to shop around and request a free quote on your next auto insurance policy. Enjoying a 30% cut on your insurance costs will go a long way toward turning your monthly budget around.

Save money with a low mileage discount from State Farm or any other car insurance companies by requesting affordable insurance coverage options from Compare.com. It takes just a minute or two to get auto insurance quotes:

Ray Prince Insurance Writer

Ray Prince is an auto insurance writer for Compare.com based in Miami. He specializes in writing long-form content and product descriptions for the automotive and auto insurance industries. His work appears on sites such as Freeway Insurance, Auto Guide, Turn5, Mercedes Benz U.S.A., and Pelican Parts, with past and current roles as a digital operations manager at Pandora Media and iHeartMedia.