State Farm Low-Mileage Discount: How to Qualify and Potential Savings
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Written byJ.J. Starr
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J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
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Edited byLequita Westbrooks
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Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.
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Drivers in the United States averaged 13,476 miles behind the wheel in 2022, according to the U.S. Department of Transportation’s Federal Highway Administration. But driving less than the national average has quite a few benefits, including fewer car accidents and paying less for car insurance for having low mileage.
If you’re a low-mileage driver, you may want to consider State Farm. Through its Drive Safe & Save program, you can get a discount and save 30% or more on your policy. State Farm has a solid reputation, plenty of discounts, and a nearly perfect Compare.com Rating.
We cover everything you need to know about State Farm’s low-mileage discount, including how it compares to the competition and how to maximize your savings.
What Is the State Farm Low-Mileage Discount?
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State Farm’s low-mileage discount rewards drivers who spend less time on the road. Insurers typically offer this discount to anyone who drives less than 7,000 miles per year, according to Kelley Blue Book (KBB). It’s a good fit for remote workers, urban drivers, students, young drivers, and retirees.
While State Farm offers “hidden discounts,” including for low mileage, availability varies by state, so check with your agent. The company doesn’t advertise the discount’s potential savings (or which coverage options it applies to), but KBB estimates the average low-mileage discount saves drivers around 3%.
Alternatively, you can enroll in the Drive Safe & Save program (covered in detail below) and allow State Farm to monitor your driving habits through a telematics device or smartphone app. You can save an initial 10% for signing up and up to 30% off your policy — but it can exceed 30% in some cases. Lowering your mileage is one way to increase your savings with this program.
Let’s take a look at eligibility requirements.
State Farm Low-Mileage Discount Eligibility Requirements
To qualify for the State Farm low-mileage discount, you’ll need to verify eligibility requirements in your state, but you can expect the threshold to be around 7,000 miles per year.
To participate in the Drive Safe & Save program, download the app on a compatible smartphone and sign up. State Farm requires drivers in some states to use a separate Bluetooth beacon that you install in your vehicle.
The program isn’t available in California, Massachusetts, or Rhode Island. North Carolina customers may or may not be eligible based on certain criteria, so it’s best to check with your agent.
The discount amount also varies based on your state’s rules, your driving behavior, and other factors. But the less you drive and the safer your habits, the higher your potential savings.
How to Sign Up for the State Farm Low-Mileage Discount
Before signing up for the State Farm low-mileage discount, log in to your account to review and update your annual mileage if needed. Contact your State Farm agent for information about your state’s terms for enrollment and for assistance with enrolling in the discount. You may need to provide your vehicle’s current odometer reading to qualify.
Follow these steps to sign up for State Farm Drive Safe & Save:
Download the Drive Safe & Save app from the App Store or Google Play.
Log in to the mobile app using your driver’s license information or StateFarm.com credentials.
Go through the prompts to enroll your car in the program and request a Bluetooth beacon if necessary.
State Farm Low-Mileage Discount vs. the Competition
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Many insurers offer a broad low-mileage discount, where you get a percentage off your policy for driving below a certain mileage annually. But some offer a specific low-mileage discount and other programs, such as usage-based insurance or pay-per-mile insurance.
Usage-based insurance determines your auto premiums by how many miles you drive and how safely you are behind the wheel. Pay-per-mile insurance is a specific type of usage-based insurance where the number of miles you drive dictates your rates.
Below, we compare State Farm’s low-mileage discount opportunities against other major car insurance companies. Keep in mind that savings and availability vary significantly from company to company.
Company/Program  | Discount Type | Advertised Discount |
|---|---|---|
| State Farm | Low-mileage discount | Unspecified |
| American Family Insurance | Low-mileage discount | Unspecified |
| USAA | Low-mileage discount | Unspecified |
| Metromile | Pay-per-mile insurance | 47% |
| Mile Auto | Pay-per-mile insurance | 30%–40% |
| Nationwide SmartMiles | Pay-per-mile insurance | Around 25% |
| Allstate Milewise | Pay-per-mile insurance | 20%–25% |
| American Family MilesMyWay | Pay-per-mile insurance | Up to 25% |
| State Farm Drive Safe & Save | Usage-based insurance | 30% or more |
| USAA SafePilot | Usage-based insurance | Up to 30% |
State Farm may not be the best way to get lower rates based on mileage alone, but its Drive Safe & Save Program offers competitive savings with discounts of 30% or more.
Competitors like Metromile and Mile Auto may provide similar or more significant savings for low-mileage drivers depending on mileage.
Nationwide and Allstate offer traditional policies, telematics programs, and usage-based programs — SmartMiles and Milewise — which could make them better options for drivers who prefer pay-per-mile coverage now but may want traditional policies later.
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State Farm Drive Safe & Save Program
State Farm’s safe driving program, Drive Safe & Save, is an excellent option for low-mileage drivers looking to save on their auto insurance. This usage-based insurance program combines car insurance discounts for various good driving behaviors.
Your phone’s internal GPS sensors will help the app determine if you’re driving. It’ll record and evaluate your mileage, speed, braking, acceleration, cornering, and phone distractions.
To verify low mileage, you must submit odometer information to the company at the end of each policy period when you’re ready for renewal, usually every six months.
State Farm doesn’t guarantee a discount for participating in the program, but you’ll get an initial 10% discount for trying it. You might also see insurance rates go up after signing up if, for example, you drive more than your estimated annual mileage.
5 Other Ways to Save on Your State Farm Policy
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State Farm offers several other ways to reduce your car insurance premiums. Here are some other discounts to consider:
Steer Clear program: If you’re under 25 and have a clean driving record, completing State Farm’s safe driving program can save you additional money.
Good driver: Drivers with no at-fault accidents or traffic violations in the past three years can qualify for a good driver discount.
Multiple vehicle: You can get an additional discount if you insure two or more vehicles with State Farm.
Good student: If you’re a full-time student under 25 with good grades, you can qualify for the State Farm good student discount and save up to 25% off your policy.
Defensive driving: Completing an approved defensive driving course can lead to savings depending on your ZIP code and insurance policy terms.
Discount opportunities and values vary by state, so it’s a good idea to confirm eligibility with your insurance agent and get discounts tailored to your specific needs.
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State Farm Low-Mileage Discount FAQs
A low-mileage insurance discount can help you save if you don’t drive much, but there are a few details worth knowing to maximize your savings at State Farm. Below, we’ve answered some of the most common questions about the low-mileage discount and the Drive Safe & Save program.
How does State Farm verify mileage?
State Farm verifies your mileage through odometer readings. You’ll need to submit a reading before each policy renewal. The company may use a third party to verify your mileage.
Is Drive Safe & Save a tracking device?
Yes. The Drive Safe & Save program uses a telematics device or your smartphone to track you and collect driving information, including mileage. But it only tracks data relevant to calculating your insurance discount, like how much and how safely you drive.
How often does the Drive Safe & Save discount update?
The Drive Safe & Save discount updates every policy period, typically every six months. Your premium will change based on your driving habits and mileage during that time.
Can you stack State Farm discounts?
Yes, you can stack multiple discounts with State Farm, including Drive Safe & Save, bundling insurance products with the insurer, and good student discounts.
Does State Farm Drive Safe & Save track speed?
Yes, Drive Safe & Save tracks speed and references it to the speed limit on your road thanks to GPS. But speed isn’t the only factor. The program considers multiple aspects of your driving, like hard braking and acceleration, to calculate your overall driving safety and potential discount.
Sources:
Federal Highway Administration, “Average Annual Miles per Driver by Age Group,” accessed October 22, 2024.
Energy.gov, “Fact #759: December 24, 2012 Rural vs. Urban Driving Differences,” accessed October 22, 2024.
Google Play, “Drive Safe & Save,” accessed October 22, 2024.
CNBC, “Are safe driving discounts worth it?,” accessed October 22, 2024.
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J.J. StarrInsurance Writer
J.J. Starr is an insurance and personal finance expert who has been writing for Compare.com since 2022. Her work has been published across the web, appearing on sites such as Insurify.
Prior to writing for Compare.com, J.J. was a registered banker and life insurance consultant, holding a Series 6, FINRA, and life insurance license. She also earned a master’s degree in writing from New York University.
J.J. has a passion for helping people save money by explaining complex topics like car insurance in a way that is simple and easy to understand.
Lequita WestbrooksSenior Editor
Lequita Westbrooks is an insurance editor at Compare.com. Her writing and editing experiences span several industries, including insurance, personal finance, higher education, and more. She excels at explaining complex topics like auto insurance in simple, easy-to-understand language and is passionate about helping readers save money. Lequita graduated from the University of South Florida, where she earned her Bachelor’s degree in English.