The Best and Cheapest Low-Mileage Car Insurance (2024)

Drivers looking for cheaper premiums should consider low-mileage plans from Hugo, USAA, and State Farm for maximum savings.

Angela Brown
Written byAngela Brown
Angela Brown
Angela Brown
  • 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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Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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Konstantin Halachev
Data reviewed byKonstantin Halachev
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.

Updated July 25, 2024

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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 fewer 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 for premium determinations.

How low-mileage drivers can save on car insurance

Low-mileage drivers have several options for saving money on car insurance. In addition to low-mileage discounts, drivers should consider options like pay-as-you-go and pay-per-mile car insurance. People who drive far less than the average consumer frequently save money with usage-based insurance.

Common factors contributing to low-mileage usage include working from home, living in a walkable city, short commutes, and using public transportation. People who travel less in their car often benefit from discounts because their risk of an accident or a claim is lower. But your savings depend on your insurance company, where you live, your vehicle type, and other factors.

The table below shows the average liability-only rates for typical low-mileage drivers from some of the most popular insurance companies.

The below rates are estimated rates current as of: Monday, July 1 at 12:00 PM PDT
Data reviewed by Konstantin Halachev
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.

Insurance CompanyAverage Monthly Quote
USAA$46
Hugo$52
State Farm$55
GEICO$56
Allstate$63
Progressive$77
American Family$77
Travelers$90
Liberty Mutual$112
Farmers$113
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.

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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

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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.
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.
$52/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.
$60/mo

Launched in 2021, Hugo is currently the only insurance company offering policy terms as short as three days and the ability to make smaller, more frequent micropayments. Drivers open an account with Hugo without paying a down payment, and choose their policy term. Hugo sells policies for three, seven, 14, or 30 days, or six months, and offers minimum coverage liability insurance. Hugo no longer sells full-coverage policies, and liability policies are limited to state minimums – you can’t buy higher liability limits.

Pros
  • Short-term policies

  • No down payment required

  • Micropayment option

Cons
  • Only available in 13 states

  • Full coverage not available

  • No discounts

Read more driver reviews of Hugo
Camero - July 22, 2024
Verified

Poor Customer Support and Too Expensive

It's too expensive and I never get a response from them until days later. It's hard to modify your policy. They don’t cover all cars and when you try to talk with someone, they never answer. Very poor insurance company.

Kimberly - July 14, 2024
Verified

I disliked the fact that there's no app. I'm uncertain about its legitimacy. I was also disappointed that my coverage was not reported to my state as requested. I'm not fond of the idea that the price might change if it's turned off for a day.

I disliked the fact that there's no app. I'm uncertain about its legitimacy. I was also disappointed that my coverage was not reported to my state as requested. I'm not fond of the idea that the price might change if it's turned off for a day.

Jennifer - July 13, 2024
Verified

Rate Increase If You Turn Off and On

I can't say much except that I don't like the rate hike because I didn't use it.

Mile Auto: Best for privacy

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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.
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.
$59/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.
$110/mo

Mile Auto offers pay-per-mile insurance coverage. Unlike some companies, which typically use a black box to track mileage usage, Mile Auto asks that you 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
  • Coverage options comparable to those offered by traditional insurers.

  • No telematics device needed – track monthly miles with a photo of your odometer

Cons
  • Only available in nine states

  • Only 2.7 (out of 5) stars on Trustpilot and many complaints about poor claims experience.

Read more driver reviews of Mile Auto
Deborah - July 8, 2024
Verified

Sometimes Better Than Others

They're good, it just takes a while for them to do anything.

Allstate: Best for drivers who don’t want to think about coverage

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User Reviews
3.1
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.
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.
$63/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.
$138/mo

Allstate’s Milewise program charges drivers based on how far they 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
  • Well-established with superior ratings from A.M. Best

  • Pay-per-mile option available

Cons
  • Low customer satisfaction

  • Rates are merely average compared to other insurers

Read more driver reviews of Allstate
Michael - July 25, 2024
Verified

Extreme Increase without Warning for Veteran and Professional Driver

There was no warning or reason for the extreme increase in price within one year. There was no warning, no options to change to, and no contact from anyone. Just a new bill with a huge increase. As a veteran and a professional driver who takes the defensive driver's course every year, there is absolutely no reason for the increase.

Justo - July 24, 2024
Verified

Unreasonable Price

To me, everything is okay with Allstate except for the price of coverage.

Debra - July 24, 2024
Verified

Your prices are way too high. You need to cut it

I think your coverage for a single vehicle policy is too high.

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 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]

The table below shows how much you could save with some different insurers’ telematics programs.

Telematics ProgramCompanyAverage Monthly Cost: Full CoverageAverage Annual Savings with Telematics Program
SnapshotProgressive$134$231 per year
DrivewiseAllstate$138Up to 40% off premium
SmartMilesNationwide$186$38 per month
IntelliDriveTravelers$196Up to 30% off premium
KnowYourDriveAmerican Family$171Up 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.

Other ways to save on car insurance as a low-mileage driver

You can minimize the cost of your auto insurance by taking a few extra steps. Here are four reliable ways to lower the cost of your insurance premium:[3]

  • Bundle home and auto. Many insurers offer discounts for customers who bundle their homeowners or renters insurance and auto policies. You’ll pay for both policies in one monthly bill.

  • Improve your credit score. In most states, insurance companies can use your credit history as a factor when determining your insurance rate. You may qualify for lower rates with a higher score. Lower your debt and pay your bills on time to improve your credit score faster.

  • Look for other discounts. Ask your employer if it has discount programs with any particular company. If you’re a student, you may qualify for discounts as well. Additionally, older drivers may qualify for discounts through the AARP or other organizations.

  • Look for new rates regularly. While some companies offer loyalty discounts, you may find a better deal by comparing rates from different insurers regularly. You may want to consider checking for lower rates when you purchase a new vehicle, add a new driver, or move to a new city.

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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.

  • Is higher or lower mileage better for insurance?

    Car insurance companies generally prefer low-mileage drivers because they consider them to be lower-risk. The less time drivers spend on the road in high-traffic areas, the less likely they are to be involved in an auto accident.

  • 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/Usage-Based Insurance."
  3. Insurance Information Institute. "How to save money on car insurance."
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.

Sarah Archambault
Sarah Archambault
  • Experienced personal finance writer

  • Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Featured in

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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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