Updated: May 21, 2025
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GEICO is the best and cheapest option for low-mileage drivers, with an average rate of $982 per year or $82 per month.
State Farm provides the largest low-mileage discount at $115 per year, but GEICO still offers the lowest overall rates.
Some insurers offer pay-per-mile insurance, but it may not be ideal for drivers with a regular commute. Nationwide is the best company for pay-per-mile plans.
Low-mileage car insurance refers to the type of policy catering to people who don't drive often. Insurance companies calculate premiums based on mileage. How much you can save may vary depending on the company, but it averages $86 per year.
Generally, most companies that use annual mileage to determine your rates tend to break mileage down into three categories:
Low-mileage car insurance may be right for you if you don't drive frequently. Typically, those who drive less than 7,500 miles per year may benefit from low-mileage car insurance discounts. Availability depends on the company.
If you drive less than 26 miles per week, you may see significant savings when you get pay-per-mile insurance. But this policy isn't available in every state.
For those looking for the cheapest car insurance for low-mileage drivers, there are two types of policies to consider:
Offered by most insurance companies, this discount offers reduced rates for driving fewer miles. Typically, people who drive less than 7,500 miles per year or 10 miles or less per workday are eligible for this discount.
Pay-per-mile car insurance is a system that calculates your exact mileage and determines your rates based on how often you drive in a given period. This type of program is relatively new, but these plans are becoming more common thanks to phone apps and tracking devices. Some newer companies exclusively use this system to determine their rates. According to our research, drivers need to travel less than 26 miles per week for a pay-per-mile plan to be cheaper than a traditional policy. Because several factors determine your rates, getting a reduced rate for driving fewer miles may not be the most effective way to lower your car insurance rates significantly.
The availability of low-mileage car insurance depends on the company. Among major insurers, we found GEICO, State Farm and Nationwide to be the best options.
GEICO is the cheapest option for low-mileage coverage. We rank them among the best car insurance options in almost every state because of their low rates and easy-to-use online tools. On average, a GEICO policy costs $982 per year or approximately $82 per month.
**NOTE: USAA technically has the lowest rate for low-mileage insurance. But because their coverage is only available to military members and their families, they aren’t included in our calculations.
State Farm is our best car insurance company for drivers looking for low-mileage discounts. The company offers a $115 discount, which brings its average low-mileage premium to $1,092 per year or $91 per month. That said, the lower average cost is still $110 more than GEICO's rate.
Just because a company offers a discount for a low-mileage plan doesn’t mean they have the lowest rate. Comparing quotes and choosing the most affordable plan can save you more money than choosing the company with the best discount for low-mileage car insurance.
Nationwide is the top choice for pay-per-mile car insurance. Available in 40 states, it's the most widely accessible option. Drivers can save even more with up to a 10% discount for safe driving. Also, Nationwide charges only for the first 250 miles driven per day, which benefits those who take occasional long road trips.
Many insurance companies also offer discounts for using apps that track your driving behavior. These programs reward people for driving well, even if they aren’t on the road any less. But behavior-based programs require you to allow your insurance company to track you on the road. As such, drivers who have privacy concerns may not be interested in this type of discount.
Low-mileage discounts can help you save money, but they aren’t automatically given to you by your insurance company. To get low-mileage car insurance, you need to understand whether you qualify and actively seek a discount by following these steps.
Set your car's odometer to zero and wait one week. After one week, take note of the number of miles you've driven. Multiply that figure by 52 to get an idea of your annual mileage.
If you drive more than 7,500 miles annually, decide if it is possible to reduce your overall mileage by carpooling to work, walking to the store, or finding other ways to reduce your mileage.
Check with your insurance company and get quotes to see if you qualify for a low-mileage discount.
Discounts and rates vary by company. Aside from your insurer, consider getting quotes from multiple providers to find the best deals.
Pay-per-mile insurance is another option to help keep your rates low. Check pay-per-mile programs from different companies to see if you could benefit from it.
While taking advantage of a low-mileage discount can save you some money, there are more effective ways to reduce your car insurance premiums and find the cheapest coverage options. Comparing quotes to make sure you have the lowest possible rate, cleaning up your driving record, improving your credit score and bundling your insurance policies can all help you save. If you don’t have any loans on your vehicle and you can afford to replace it out of pocket, carrying liability-only coverage can help you reduce your overall insurance costs.
When searching for the best and most affordable car insurance policy, compare quotes from multiple providers. This will help you get an accurate estimate of how much your plan may cost. Our's calculator below can give you personalized quotes from different insurers in minutes.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jun 06, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 | 79 /of 100 | $133 | |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Online quotes are estimates, so your specific rates may be higher or lower than a sample quote reflects. Talk to an insurance agent or other representative to ensure all eligible discounts are applied to your premium, including discounts for low mileage.
Low-mileage drivers can save on car insurance through discounts or pay-per-mile policies. In this guide, we covered the best insurers, savings potential, and how to find the right coverage. Compare quotes to ensure you're getting the best rate for your driving habits.
Below, we answer common questions about qualifying for discounts, the best insurers for savings and whether pay-per-mile insurance is a better option for you.
Most insurers consider under 7,500 miles per year as low mileage, but requirements vary by provider.
Among major insurers, State Farm provides the largest discount. However, GEICO often has the lowest overall rates for low-mileage drivers.
Pay-per-mile insurance can be ideal for very low-mileage drivers, but for some, a traditional low-mileage discount may be more cost-effective.
On average, low-mileage drivers save $86 per year on car insurance. Actual savings may differ as discounts and premiums vary per company.
If you drive less than 7,500 miles per year, check if you qualify for low-mileage car insurance discounts. If you drive less than 26 miles per week, consider pay-per-mile insurance as well.
Study Overview
MoneyGeek gathered and evaluated rates using a sample driver profile to determine the average cost of auto insurance policies for specific age groups, which factors affect the decline and how premiums vary for each insurance provider.
Data Sources and Depth
Our sources for data were the insurance departments of each state and Quadrant Information Services. We reviewed 22,848 quotes from six providers across 100 ZIP codes.
Driver Profile
We utilized an average driver profile based on the following information to determine average annual auto insurance costs:
To calculate the average cost for drivers in the United States with various coverage requirements, this profile was changed by region, coverage type and amount.
Coverage Levels and Deductibles Explained
The amount of money you must pay before the insurance begins to pay is known as a deductible. The best financial coverage is offered by comprehensive and collision coverage, which is usually referred to as "full coverage" insurance.
The abbreviation 100/300/100 means:
For our sample driver, we used 100/300/100 comprehensive and collision coverage with a $1,000 deductible when compiling national averages.
50/100/50 is an abbreviation for:
When gathering state-specific data, we used 50/100/50 comprehensive and collision coverage with a $1,000 deductible for our reference driver.
Learn more about MoneyGeek's methodology.
About Rachael Brennan
Rachael Brennan is a licensed insurance agent with over a decade of experience in the industry. She holds a property and casualty (P&C) license across all 50 states and a life, health, and accidental death and dismemberment (AD&D) license in New York and surrounding states. She writes personal finance and insurance content for MoneyGeek, specializing in property, casualty, health, life and accidental death and disability insurance.
Brennan earned her Bachelor of Science in Communications from Texas A&M University-Commerce. As a writer, she uses her insurance and personal finance experience to share practical knowledge and help people make informed financial decisions.
