Low-Mileage Car Insurance

If you're driving less than most people, you shouldn't have to pay the same insurance rates as daily commuters. Low-mileage car insurance provides financial protection that covers vehicle damage, liability claims, and other covered losses for drivers who spend less time on the road than average. Coverage availability and discount eligibility vary by state and insurer. Consult with licensed insurance professionals for personalized advice.

The Federal Highway Administration reports that Americans drive an average of more than 13,000 miles per year, making anyone driving under 7,500 miles annually eligible for substantial savings.

Insurance companies recognize that driving less means lowering accident risk. We analyzed policy documents from major insurers and found that most offer traditional low-mileage discounts or usage-based programs that reward infrequent driving.

Most insurers consider drivers who travel fewer than 7,500 miles per year as low-mileage drivers, though thresholds vary by company:

• Extremely low mileage: Under 5,000 miles per year (approximately 14 miles per day)
• Low mileage: 5,000 to 7,500 miles per year (14 to 21 miles per day)
• Moderate low mileage: 7,500 to 10,000 miles per year (21 to 27 miles per day)
• Average mileage: 10,000 to 15,000 miles per year (27 to 41 miles per day)
• High mileage: Over 15,000 miles per year (more than 41 miles per day)

If you're driving fewer than 7,500 miles annually, you're likely overpaying for traditional car insurance. The good news: you qualify for discounts or specialized programs that can reduce your premiums and ensure you're only paying for the coverage you actually need. Pay-per-mile insurance saves drivers considerable money, especially for retirees, remote workers, and people who primarily use public transportation.

Consider low-mileage options if you're:

• Working remotely with minimal commuting
• Retired and driving occasionally for errands
• A college student with limited vehicle use
• Living in an urban area with public transit access

For pay-per-mile programs specifically, these plans work best for drivers who consistently travel very few miles throughout the year.

We contacted customer service departments at major insurers and analyzed their low-mileage programs to identify the best options. Our top picks:

Understanding exact discount thresholds helps you choose the right insurer and program. We researched specific requirements from major companies:

State Farm representatives contact customers annually to collect odometer information and confirm continued eligibility. USAA offers similar programs but only serves military members, veterans, and their families.

State Farm's Drive Safe & Save program tracks annual mileage and basic driving characteristics, with discounts updated at each renewal. The program includes any previous mileage-based premium reductions you received.

For drivers looking for the most affordable coverage for infrequent driving, there are three primary types of low-mileage policies: traditional low-mileage discounts, pay-per-mile insurance and usage-based insurance. Understanding how each option works helps determine the best financial value for your situation.

Insurance companies verify your low-mileage status through various methods. Initially, you may need to provide odometer readings or photos, show maintenance records or allow technology-based tracking to confirm your reported mileage. Ongoing verification often includes annual odometer check-ins, policy renewal reviews or continuous monitoring through telematics devices or smartphone apps.

When searching for the best and most affordable low-mileage car insurance policy, compare quotes from multiple providers offering different program types. This helps you get an accurate estimate of how much your plan may cost. Our calculator below can give you personalized quotes from different insurers in minutes.

Avoiding frequent errors helps you maximize your low-mileage insurance benefits and prevent potential issues with your coverage or discounts.

• Mileage estimation errors: Many drivers underestimate their annual mileage by forgetting vacation trips, errands and seasonal driving variations. Track your mileage carefully and include all driving, not just commuting, to avoid losing discounts later. Underreporting mileage to qualify for discounts can lead to claim denials or policy cancellation.
• Program selection issues: Don't choose programs based only on maximum advertised discounts. Consider technology requirements, privacy implications, whether the program fits your driving patterns, and comfort level with monitoring. Focusing only on discount size rather than total premium costs can lead to paying more overall.
• Documentation and compliance: Maintain proper mileage records and promptly report any changes in driving patterns. For technology-based programs, ensure devices or apps remain functional and remember to carry your phone for app-based tracking. Failing to update mileage changes when life circumstances change can affect your coverage.
• Missing opportunities: Review your low-mileage program annually and compare it with other options. Don't forget to combine low-mileage discounts with other available discounts like multi-policy or good driver credits to maximize your savings. Choosing programs based on convenience alone, without considering long-term costs, can be expensive.

Low-mileage drivers can save on car insurance through traditional discounts, pay-per-mile policies or usage-based insurance programs. GEICO consistently offers the most competitive overall rates for low-mileage drivers through its traditional discount program, while Nationwide leads the pay-per-mile market for very low-mileage drivers. State Farm might give you the biggest discount, but that doesn't mean you'll pay the least overall. Its regular rates could still be higher than another company's discounted price.

Maximize these savings by being honest about how much you drive and not getting caught up in who offers the flashiest discount percentage. A 30% discount sounds great, but if you're starting with a $2,000 premium, you still pay more than someone who gets 15% off a $1,200 insurance policy. As your circumstances change, periodically reassess whether your current program continues to offer the best value or if switching programs or carriers could provide better savings.

Below, we answer questions about qualifying for discounts, the best program types for savings and whether pay-per-mile insurance is a better option for you.

We designed our research to identify which insurers reward low-mileage drivers with meaningful savings and which coverage levels make the most financial sense when you're not constantly on the road.

How We Analyzed Low-Mileage Driver Rates

We gathered 22,848 quotes from six major insurers across 100 ZIP codes to determine which companies offer the best rates for drivers who log fewer miles annually. Our data sources included state insurance departments and Quadrant Information Services, allowing us to compare real pricing across different coverage scenarios.

Sample Driver Profile

To estimate average car insurance costs across the U.S., we used a standardized driver profile:

• 40-year-old man
• Drives a Toyota Camry LE
• Maintains a clean driving record
• Drives 12,000 miles annually

While 12,000 miles per year reflects typical driving habits, we used this baseline to compare how rates shift across regions and coverage levels. From there, we identified how low-mileage car insurance options can lead to lower premiums for drivers with reduced annual mileage, especially those driving less than the national average.

Coverage Levels We Tested

For national averages, we analyzed 100/300/100 comprehensive and collision coverage with a $1,000 deductible. This means:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability

State-specific comparisons used 50/100/50 comprehensive and collision coverage with the same $1,000 deductible, representing more budget-conscious coverage levels that still provide solid financial protection.

Why This Approach Works for Low-Mileage Drivers

Lower annual mileage usually reduces accident risk, but not all insurers price policies accordingly. Our methodology identifies companies that recognize this reduced exposure and pass savings on to customers who drive less. The comprehensive and collision coverage we tested, often called "full coverage," ensures you're protected financially whether your parked car gets damaged or you're in a rare accident.

This research helps you avoid overpaying for coverage when your driving patterns suggest you should qualify for better rates.

Learn more about MoneyGeek's methodology.