The Best Low-Mileage Car Insurance (2025)
Drivers looking for cheaper premiums should consider low-mileage plans from Allstate, Mile Auto, and Hugo for maximum savings.
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Written byAngela Brown
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17+ years in insurance and personal finance writing
In-depth knowledge of home and real estate topics
Angela is an insurance and personal finance expert who uses her experience to create content that helps readers understand important and complex topics.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Reviewed byDaniel Roccato
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30+ years in financial services
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
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Data reviewed byKonstantin Halachev
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7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.
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Table of contents
If you don’t drive much, you may wonder why your car insurance cost is so high. On average, Americans drive about 13,500 miles per year. If you put less than 7,500 miles on your car every year, you may qualify for significantly discounted rates or low-mileage policies.
You may also consider pay-per-mile policies, which have rates based on actual usage, especially if you drive less than 10,000 miles annually.[1] Multiple insurers offer pay-per-mile coverage, so it’s a good idea to compare quotes to help you find the best low-mileage car insurance policy for your needs.
Quick Facts
The “low-mileage” designation is specific to drivers who travel less than 7,500 miles yearly.
Telematics programs can collect data from drivers’ vehicles to help personalize premium costs.
Not all mileage-based programs use telematics to calculate car insurance premiums.
How low-mileage car insurance works
If you’re a low-mileage driver, you can take advantage of a variety of options when shopping for car insurance:
Telematics: Some companies use telematics programs that track your driving performance and provide data to the insurer. If you demonstrate safe driving habits, you can receive lower premiums.
Pay per mile: With a pay-per-mile policy, insurance companies typically charge you a base rate for coverage, plus a per-mile rate for the number of miles you drive each month.
Pay as you go: Most car insurance companies offer only six- or 12-month policies. But with Hugo, you can get a policy for three, seven, 14, and 30 days, as well as six months. Unfortunately, the insurer offers only state-minimum liability insurance.
Low-mileage discount: Some insurance companies offer discounts to people who drive fewer miles. The exact discount will vary by insurer.
If you work from home, are retired, or have a very short daily commute, you might consider a low-mileage car insurance policy to help you save.
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Best low-mileage car insurance companies
Choosing the right car insurance company is important for all drivers. If you’re looking for lower rates based on your annual mileage, it’s a good idea to check for companies that specifically offer pay-per-mile insurance, usage-based coverage, or significant discounts for low mileage.
You can find policies that provide the same or similar coverage as traditional insurance policies at a much lower rate.
Hugo: Best for drivers on a budget
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $208/mo |
4.1
Best choiceBased on 145 verified guest reviews and ratings
How drivers feel about Hugo
Drivers appreciate the pay-as-you-go option and affordability but dislike the lack of full coverage and poor customer service.
AI-generated from the text of verified reviews collected by Insurify
Best For
Micropayments
No down payments
Fast coverage
How drivers feel about Hugo
Drivers appreciate the pay-as-you-go option and affordability but dislike the lack of full coverage and poor customer service.
AI-generated from the text of verified reviews collected by Insurify
Best For
Micropayments
No down payments
Fast coverage
Reviews (57)
Andrea
April 15, 2025
Verified Review
Excellent
Hugo is awesome.
Donna
April 2, 2025
Verified Review
No Thanks
In my experience, Hugo is an option for people who are struggling. However, it seems to exploit those who are struggling because the insurance only covers the minimum requirements. This means that the policyholder will be fully responsible and have to pay out of pocket for anything that goes wrong with the vehicle.
Rebekah
March 18, 2025
Verified Review
Never Able to Speak with Customer Service, So I Switched!
I was never able to speak with someone, so I switched!
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NRA.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NRWhy we picked this company
Hugo launched in 2021 and is currently the only insurance company offering on-demand car insurance. Drivers can open a Hugo account without paying a down payment up front. You can choose a policy term of three, seven, 14, or 30 days, or six months, and you can pay smaller amounts more frequently instead of all at once. You’ll also receive instant proof of insurance. Hugo currently only offers state-minimum liability coverage in 13 states.
Pros
Short-term policies
No up-front down payment required
Flexible, pay-as-you-go insurance
Cons
Available in only 13 states
Doesn’t offer collision or comprehensive coverage
No discounts available
Mile Auto: Best for privacy
| User Reviews | 4.2 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.5 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $55/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $89/mo |
4.2
Best choiceBased on 95 verified guest reviews and ratings
How drivers feel about Mile Auto
Drivers appreciate the quality service but find the rates high and claim processing slow.
AI-generated from the text of verified reviews collected by Insurify
Best For
Low-mileage drivers
Senior drivers
Cheap full coverage
How drivers feel about Mile Auto
Drivers appreciate the quality service but find the rates high and claim processing slow.
AI-generated from the text of verified reviews collected by Insurify
Best For
Low-mileage drivers
Senior drivers
Cheap full coverage
Reviews (41)
Hector
May 28, 2025
Verified Purchase
Very nice and Happy.
I have already told several people about you and I have shown them my bills so that they can see that what I say is true. I regret not having known about you before, but so far I am doing free promotion because you deserve it and are sending a great message to those other large insurance companies.
Arlene
May 24, 2025
Verified Purchase
Not bad
Good value for the price. I wish they had the option to pay my premium online before the due date. Weird billing practices. Otherwise, not a bad experience!
Janet
April 8, 2025
Verified Review
Mile Auto Insurance is Great
They are the most reasonable carrier. I've checked 15.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NRNAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NRA.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NRWhy we picked this company
Mile Auto offers pay-per-mile insurance coverage. Unlike some companies, which typically use a black box to track mileage usage, Mile Auto asks you to send a photo of your odometer once per month. You pay a base rate plus a set rate per mile. Mile Auto uses a system that ensures the images you send are legitimate and compares your usage to your previous odometer readings.
Pros
Low-mileage drivers may see significant savings
You don’t have to install a telematics device in your car
Offers roadside assistance and rental reimbursement add-ons
Cons
Available in only seven states
No bundling or discount opportunities
No scores from J.D. Power or the National Association of Insurance Commissioners
Allstate: Best for drivers who don’t want to think about coverage
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $61/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $130/mo |
4.0
Best choiceBased on 6,793 verified guest reviews and ratings
How drivers feel about Allstate
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
Reviews (3,634)
Donny
May 28, 2025
Verified Review
I'd never deal with them again.
Rates are too high for state-required insurance.
Howard
May 27, 2025
Verified Review
Used to be a good value
We have been customers for 42 years. We haven't seen any downward adjustment even though we're in North Carolina. We're looking for other quotes.
John
May 25, 2025
Verified Review
Excellent
Easy to deal with.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Allstate’s Milewise program charges based on how far you drive each month. You install a box that sends driving data to the mobile app so the company can track your mileage and charge you accordingly. Allstate charges a base rate plus a cost per mile. With this plan, you don’t have to worry about sending a photo each month; instead, the tracking box uploads the data independently.
Pros
Ample opportunities for bundling discount
Offers a pay-per-mile option
A+ (Superior) financial strength rating from AM Best
Cons
Low customer satisfaction
Rates are merely average compared to other insurers
Below-average rank for customer satisfaction in many regions, according to J.D. Power’s 2024 U.S. Auto Insurance Study
Best telematics programs for low-mileage drivers
Telematics refers to data a device collects and sends back to an insurance company’s server. The devices track mileage and driving habits to help insurers better understand drivers’ behavior and customize their car insurance rates accordingly. Auto insurance companies may collect telematics through a device installed in a vehicle or through a mobile app.
Telematics can be helpful if you drive less often or practice very safe driving habits. The collected data allows you to save (sometimes substantially) on your car insurance rates. The data can also help you learn to recognize and correct bad driving habits. Though it’s important to keep in mind privacy concerns as you start sharing this information with your insurance company.
The table below shows how much you could save with some different insurers’ telematics programs.
Telematics Program  | Average Monthly Cost: Full Coverage | Average Annual Savings with Telematics Program |
|---|---|---|
| Progressive Snapshot | $154 | $231 per year |
| Allstate Drivewise | $130 | Up to 40% off premium |
| Nationwide SmartMiles | $179 | $38 per month |
| Travelers IntelliDrive | $189 | Up to 30% off premium |
| American Family KnowYourDrive | $150 | Up to 20% off premium |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Important Information
The biggest drawback of telematics programs is privacy concerns. For example, some consumers may be concerned about telematics’ ability to track location and gather other personal data.[2]
Some states, such as California and New York, have enacted legislation that requires insurers to disclose tracking practices and devices.[3]
How to choose the best low-mileage car insurance
If you think low-mileage car insurance could be right for you, follow these steps to choose a policy:
Check your mileage. Start tracking your mileage to get an idea of how many miles you put on your car each month. This will give you a clearer idea of whether low-mileage car insurance makes sense for you.
Compare car insurance quotes. Many large car insurance companies have some sort of telematics program. Compare quotes from three to five insurers with these programs, and read customer reviews to get a better sense of how each company does business.
Consider pay-per-mile options. Consider whether you want to install a tracking device in your car or whether you’d rather pay a base rate plus a rate for each mile you drive. Not every insurer requires you to install a tracking device to submit your monthly mileage information.
Purchase a policy. Once you’ve chosen an insurer, provide some additional details and purchase your new low-mileage policy.
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Low-mileage car insurance FAQs
Saving money on auto insurance may be simple if you don’t drive often. Here’s some additional information about low-mileage car insurance policies.
What is considered a low-mileage driver?
Low-mileage drivers typically drive 7,500 miles or less per year. But some insurers offer rates for people who drive less than 10,000 miles annually.
Does lower mileage reduce car insurance costs?
Sometimes. Being a low-mileage driver can help you reduce your car insurance costs if you put less than 10,000 miles on your car each year.
Is pay-per-mile insurance worth it?
Pay-per-mile insurance can save drivers a lot of money. Retirees, drivers working from home, and people who primarily use public transportation can save on insurance premiums without sacrificing coverage.
What’s the difference between pay-per-mile and usage-based insurance?
Pay-per-mile programs allow drivers to pay a base rate and a per-mile fee. Usage-based insurance uses telematics technology to consider factors like mileage, speed, turning, and other safe driving behaviors to offer discounts for good driving practices.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Sources
- U.S. Federal Highway Administration. "Average Annual Miles per Driver by Age Group."
- National Association of Insurance Commissioners. "Telematics."
- Insurance Information Institute. "Background on: Pay-as-you drive auto insurance (telematics)."
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Angela Brown
Angela Brown is a freelance writer with 17 years of professional writing and editing experience.
She specializes in finance, real estate, and insurance content. Angela uses her experience to
create easy-to-understand content that helps consumers understand tough topics better. When
she’s not working, she enjoys spending time with her family and planning vacations.
Angela has been a contributor at Insurify since October 2022.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
Dan is a well-recognized and widely quoted financial services expert, regularly appearing in a variety of national and local media as a subject matter expert.
7+ years experience in data analysis
Ph.D. in Computational Biology
Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.