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.

Angela Brown
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Ashley Cox
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Konstantin Halachev
Data reviewed byKonstantin Halachev
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Konstantin HalachevVP of Engineering & Data Science
  • 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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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.
7.0 /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.
$214/mo
4.1
Best choiceBased on 132 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 (51)

Sara

February 15, 2025

Verified Review

Hugo: Immediate, Hassle-Free Insurance

Just make sure you're covered if you're driving; that's all you have to do.

Lachica

December 24, 2024

Verified Purchase

Hugo is the Best and Most Affordable Insurance I've Ever Had

I never had a problem with Hugo. It's just challenging to maintain it with a single income.

Natalie

December 5, 2024

Verified Purchase

Great! Affordable Insurance!

Excellent! It fits perfectly into my budget. It gives me peace of mind every time I head out.
See all Hugo reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NR
A.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).
NR
Why 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.
$91/mo
4.2
Best choiceBased on 68 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 (36)

Richard

January 13, 2025

Verified Purchase

Loose Time Frames

They give you two days to submit a picture of your mileage, and then they threaten to charge you for 40 miles a day.

James

January 13, 2025

Verified Purchase

So far, so good. It's better than paying six or seven hundred a month. I'll let others know. Thanks.

So far, so good. It's better than paying six or seven hundred a month. I'll let others know. Thanks.

Matthew

January 9, 2025

Verified Purchase

Great Cheap Auto Insurance!

Give them a try if you are a new driver and drive an old car that will get totaled in any accident due to the repair costs exceeding the fair market value of your car.
See all Mile Auto reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NR
A.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).
NR
Why 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.
$62/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.
$132/mo
4.0
Best choiceBased on 5,905 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 (3,221)

Ronald

February 19, 2025

Verified Review

Significant increase in house insurance, approximately $400.00

The service is great, but the price for auto insurance is a little high. The house insurance is very high, so I'm looking around as I'm on a fixed income.

Tracey

February 18, 2025

Verified Review

Unexpected Rate Increase

They will offer you a good rate for six months, then unexpectedly increase your rate significantly for no apparent reason.

Howard

February 18, 2025

Verified Review

Being an Allstate Client

We have been Allstate clients for 42 years. I think that says it all.
See all Allstate reviews
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94
A.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.

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$148$231 per year
Allstate Drivewise$132Up to 40% off premium
Nationwide SmartMiles$181$38 per month
Travelers IntelliDrive$191Up to 30% off premium
American Family KnowYourDrive$157Up 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:

  1. 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.

  2. 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.

  3. 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.

  4. 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
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • 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.

Sources

  1. U.S. Federal Highway Administration. "Average Annual Miles per Driver by Age Group."
  2. National Association of Insurance Commissioners. "Telematics."
  3. Insurance Information Institute. "Background on: Pay-as-you drive auto insurance (telematics)."
Angela Brown
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.

Ashley Cox
Edited byAshley CoxSenior Managing Editor
Headshot of Managing Editor Ashley Cox
Ashley CoxSenior Managing Editor
  • 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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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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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