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Best Car Insurance for Low-Mileage Drivers: Quotes, Discounts for 2022
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Being a low-mileage driver comes with a ton of perks—less wear and tear on your vehicle, lower fuel costs, and a smaller carbon footprint. But did you know that you can also get more affordable car insurance when you drive less? This article will walk you through everything you need to know about:
Ready for low rates right now? Head over to the Insurify rate-comparison tool. Fill out one brief form to get low-mileage quotes from top insurers in your area. It's the easiest way to pay less for car insurance.
After reviewing thousands of quotes, we found that the best insurance companies for low-mileage drivers were not from the most well-known insurers. Smaller companies, like First Chicago, offered the cheapest car insurance rates based on usage.
Below are the five cheapest insurers, on average, for low-mileage drivers.
|Insurance Company||Monthly Quote for Low-Mileage Drivers|
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Most insurance companies define a low-mileage driver as one who drives fewer than 7,500 miles a year. However, different insurers set the threshold for “low mileage” differently. Some companies consider any annual mileage of fewer than 13,000 miles as “low-mileage” driving. Be sure to check what mileage your insurer requires for the low-mileage discount.
You can take advantage of lower rates based on your mileage in two ways. The first is through a discount, which offers a percentage off your quoted rate. The second is by purchasing a pay-per-mile car insurance policy. This is sometimes called “usage-based insurance.”
Some companies, like Metromile, specialize in low-mileage policies. Other companies offer low-mileage policies alongside regular policies. For example, Nationwide offers SmartMiles car insurance. More on this later.
Are you on the cusp of a low-mileage discount, and you want to put fewer miles on your car? There are a few common strategies to get your mileage under 7,500 miles per year. You can use public transportation or a rideshare service to get where you need to go. You could also walk or ride a bike, which gives you the added benefit of exercise.
You can arrange for carpooling with coworkers or classmates. Or you can opt to work from home more often if your job allows you to. When running errands, group your tasks together and try to do them all at once.
These tips may not turn a high-mileage driver into a low-mileage driver, but they can still reduce the number of miles you drive. Remember, driving less has a ton of benefits:
Many companies offer steep discounts to low-mileage drivers. That’s because people who drive less are less likely to get into a car accident or other scenario that results in a car insurance claim. In other words, low-mileage drivers pose a lower risk to an insurance company.
Low-mileage discounts range from 5 percent to as much as 25 percent, depending on the company. Most companies will qualify you as a low-mileage driver through the use of a telematics program—more on this in the next section.
Beyond low-mileage car insurance discounts is pay-per-mile insurance. This is a type of insurance policy that bases its rate on the number of miles you drive your car. Several insurance companies specialize in policies for people who drive less than the average driver. With these companies, the less you drive, the less you pay. Companies that specialize in pay-per-mile insurance include:
Generally speaking, pay-per-mile insurance is worth it if you drive fewer than 26 miles per week.
It’s also important to note that these companies will need to monitor your car through the use of an app or plug-in device. Some people may not be comfortable agreeing to surveillance by their insurer.
Across the car insurance industry, telematics programs are one of the best ways to get lower rates. Participating in telematics is also a great way to help you become a better motorist.
Telematics programs monitor your driving behavior through the use of a mobile app or installed device. Drivers with low-risk behavior, such as driving less, receive a discount. The better the driver, the better the discount.
The trade-off for using a telematics program is privacy. You’re agreeing to be monitored by your insurance company—where you drive, when you drive, how you drive. But for many, the savings are worth it.
|Allstate||Drivewise||Up to 40 percent|
|Farmers||Signal||Up to 15 percent|
|GEICO||Drive Easy||Up to 20 percent|
|Liberty Mutual||RightTrack||Up to 30 percent|
|Nationwide||SmartRide||Up to 40 percent|
|State Farm||Safe & Save||Up to 30 percent|
Even though car insurance is already inexpensive for low-mileage drivers, there’s no reason not to get a lower rate if you can. Companies use a range of rating factors to determine your monthly rate. These include:
Understanding how insurance companies rate your risk is the key to getting a lower rate. Below are our best tips for getting even lower premiums.
Doing a quick audit of your auto insurance policy can save you a ton of money. Review the types of insurance coverage you have—liability, collision, comprehensive, etc. Make cuts to anything you don’t need. For example, if you have an older vehicle, you may not need full-coverage car insurance. Unsure about what you need? Speak to your insurance provider about your options.
You can also raise your deductible(s). The higher your deductible, the lower your car insurance premium. Just be sure that you keep enough in your savings to cover the deductible in the event of a claim.
When it comes to discount programs, you don’t have to choose. Stack as many discounts as you can. The more you stack, the cheaper the rate. Unsure if you got everything you’re entitled to? Speak with your insurance agent. They should help you take advantage of anything you’ve missed.
When you drive safely, you’re less likely to get into an at-fault accident. When you obey traffic laws, you’re less likely to get a ticket. Safe drivers with clean driving records get low rates. And if you are practicing safe driving habits, sign up for a telematics program. You can lower your rate significantly when you show your insurer how well you drive!
In most states, insurance companies can use your credit score to determine your risk. People with lower scores are deemed higher-risk than those with good credit. Staying on top of your credit score is an important way to keep rates low.
Comparing rates before you buy is the only way to know for certain you’ve got the cheapest rate possible. This task is easy and confidential when you use Insurify to compare rates. Plus, you can adjust insurance options—like coverage limits and deductibles—to get an even clearer picture of your insurance costs. Try it today!
Where you live has a big effect on your car insurance rate. If you live in areas with fewer drivers on the road, low claim rates, and good road conditions, you’ll find yourself with a better rate than the national average. In states with low auto insurance rates to begin with, costs get even lower for low-mileage drivers.
Here are the states with the cheapest rates for low-mileage drivers:
|State||Cheapest Monthly Quote for Low Mileage|
While you might expect states like California and Illinois to have the highest rates for low-mileage drivers, you’d be wrong. Those states are:
Finally, where you live in your state can also lower or raise your premiums. For example, New Yorkers living outside the New York City metropolitan area will pay less as low-mileage drivers than those living in or near the city.
Generally speaking, a low-mileage driver drives fewer than 7,500 miles a year. Some insurance companies may consider anyone driving fewer than 12,000 miles a year a low-mileage driver.
Low-mileage drivers should look for companies that offer low-mileage discounts or low-mileage policies. They should also compare low-mileage car insurance quotes from top companies before they buy and at least every six months after that. They can do this easily (and for free!) with the Insurify rate-comparison tool.
The easiest way to find the best low-mileage car insurance rate is by using Insurify. Fill out one form, and uncover six or more accurate auto insurance quotes from top companies in your area. Plus, it’s confidential: Insurify uses AI to get your rates without sharing any of your information. Save your profile and turn on notifications to receive an email any time there’s a rate drop.
Low-mileage drivers get a ton of benefits, including low rates. But that doesn’t mean they can’t save even more by using a few tips. First, ensure you set your insurance program to cover just what you need, no more and no less. Next, raise your deductible as high as you can reasonably afford. Then, take advantage of other discounts you’re entitled to—there’s no reason to miss even one.
Finally, compare your rate with Insurify. One confidential form lets you compare rates from the best insurance companies in your area. It’s the easy, fast, and free way to always know you’re getting the best rate.
The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.
Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews.
With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.