The Best Low-Mileage Car Insurance (2026)
Drivers looking for cheaper premiums should consider low-mileage plans from Allstate, Mile Auto, and Hugo for maximum savings.
Secure. Free. Easy-to-use.
4.7 / 516K reviews
)
Written byKatie Powers
)
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
){kind=small}
){kind=small}
)
Edited byJohn Leach
)
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
)
Reviewed byDaniel Roccato
)
Daniel RoccatoAdvisor
30+ years in financial services
Clinical Professor of Finance, University of San Diego
)
Data reviewed byKonstantin Halachev
)
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology
Updated
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
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.
If you put less than 7,500 miles on your car every year, you may qualify for significantly discounted rates or low-mileage policies. Low-mileage drivers save 13% on car insurance compared to high-mileage drivers, Insurify data shows.
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 people who drive less than 7,500 miles yearly.
Telematics programs can collect data from drivers’ vehicles to help personalize premiums.
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. Tech-savvy drivers could benefit from enrolling in a telematics program.
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. This could be a good option for city dwellers who have short commutes or take public transportation to work.
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, or 30 days, as well as six months. Unfortunately, the insurer offers only state-minimum liability insurance. Pay-as-you-go coverage could be a good choice for remote workers or retirees.
Low-mileage discount: Some insurance companies offer discounts to people who drive fewer miles. The exact discount will vary by insurer.
How to calculate your annual mileage
You have two main ways to calculate your annual mileage:
Weekly calculation: Record your current odometer reading on a Monday morning, and drive as you normally would for one week. Subtract your starting reading from the reading at the end of the week, and multiply by 52.
Monthly calculation: Record your odometer reading on the first day of the month, then record another reading at the end of the month. Subtract the first reading from the second monthly reading, then multiply that number by 12.
Find Cheap Car Insurance
Liability rates start at $98 per month
Excellent
4.7 out of 5 based on 15,740 reviews
Secure. Free. Easy-to-use.
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.
Mile Auto: Best for privacy
| User Reviews | 4.5 |
|---|---|
| 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. | 8.8 /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. | $74/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 |
4.5
Best choiceBased on 209 verified driver reviews and ratings
Mile Auto's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 3.4 | 3.6 |
| Discounts | 4.0 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 4.0 | 2.9 |
How drivers feel about Mile Auto
Drivers appreciate the quality service but find the rates high and claim processing slow.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 70 Mile Auto reviews
Verified Purchase
Reviewed in Georgia on July 12, 2026
It’s been fair so far, but I wish you could access them online. I’d like to know what coverage options I can add. Discussing them on the phone is fine, but sometimes you want to see it for yourself.
Verified Purchase
Reviewed in Georgia on June 6, 2026
Overall, I had a good experience and saved money.
Verified Purchase
Reviewed in Tennessee on May 6, 2026
I just wish they would send me an actual insurance card and my policy info in the mail, not just email, because I have no way to print it.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
Not rated
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
2.18
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
Nationwide: Best for broad availability
| User Reviews | 4.2 |
|---|
4.2
Best choiceBased on 1,003 verified driver reviews and ratings
Nationwide's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.0 | 3.6 |
| Discounts | 3.6 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
How drivers feel about Nationwide
Drivers appreciate the helpful and knowledgeable customer service but dislike the frequent and significant rate increases. Some also found the claims process to be slow and frustrating.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 519 Nationwide reviews
Verified Review
Reviewed in New York on July 1, 2026
There are no discounts for senior citizens.
Verified Review
Reviewed in New York on May 21, 2026
Just your average auto insurance company.
Verified Review
Reviewed in South Carolina on May 15, 2026
Expensive for the coverage provided.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
641
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.7
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
Nationwide’s pay-per-mile program, SmartMiles, uses either a telematics device or existing technology in a connected car to track your driving behavior and miles. SmartMiles is the most widely available pay-as-you-go car insurance; it’s available in most states where Nationwide operates.
Your rate will vary each month because Nationwide uses a base rate and a per-mile charge to calculate your premium. When your policy renews, you could earn a discount of up to 10% for safe driving habits.
Pros
Available in 44 states
Safe driving discount of up to 10% when policy renews
Road-trip mileage cap means paying for only first 250 miles per day
Cons
Not available in Alaska, Hawaii, Louisiana, North Carolina, New York, and Oklahoma
Not the cheapest insurer
SmartMiles device might not be compatible with some hybrids and diesel-powered cars
Allstate: Best for drivers who don’t want to think about coverage
| User Reviews | 3.8 |
|---|---|
| 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. | $72/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. | $146/mo |
3.8
A solid optionBased on 11,519 verified driver reviews and ratings
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.3 | 2.9 |
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.
Based on analysis of verified reviews collected by Insurify
Best For
Showing recent national reviewsSee all 4,544 Allstate reviews
Verified Review
Reviewed in Colorado on July 12, 2026
Horrific—they sent me to collections over a $10 charge for checking my credit report.
Verified Review
Reviewed in Texas on July 12, 2026
Allstate is my current insurance, and they’ve pretty much cost me my house of 36 years. A hidden leak in the kitchen should be basic coverage because without a kitchen, you don’t have a functional home.
Verified Review
Reviewed in California on July 11, 2026
Be sure to get all the information you need.
…
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
636
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
1.02
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.[2]
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.[3]
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 | $136 | $231 per year |
| Allstate Drivewise | $146 | Up to 40% off premium |
| Nationwide SmartMiles | $187 | $38 per month |
| Travelers IntelliDrive | $191 | Up to 30% off premium |
| American Family KnowYourDrive | $161 | Up to 20% off premium |
Disclaimer: Table data sourced from real-time quotes from Insurify's 500+ partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.
Expert’s insight
“Privacy is a concern for many drivers who consider telematics. They may worry over telematics’ ability to track location and gather other personal data. Some states, such as California and New York, have passed laws that require insurers to disclose tracking practices and devices.”
){kind=small}
Britney BalkLicensed P&C Agent and Customer Service Supervisor
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.
Shop for Car Insurance Online
Check quotes from 120+ top insurance companies
Excellent
4.7 out of 5 based on 15,740 reviews
Secure. Free. Easy-to-use.
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.
Which insurance company is cheapest for low-mileage drivers?
Just Pay-Per-Mile, Novo Flex, and Lemonade are the cheapest car insurance companies for low-mileage drivers, according to Insurify data.
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.
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)."
Methodology
Insurify data scientists analyzed more than 190 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 500+ 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.
Related articles
)
What Is a Vanishing Deductible in Car Insurance?
A vanishing deductible can put money back into your pocket for being a safe driver.
)
Best Companies for Auto and Renters Insurance Bundles
An auto and renters bundle is when you purchase these two policies from the same insurer. State Farm, Allstate, and Erie are some of our top picks for bundling auto and renters insurance.
)
Telematics Car Insurance: Programs, Discounts, and Privacy
Telematics insurance can earn you discounts of 5%–40%, but you’ll have to give up some privacy to get it. And some insurers might increase your rate if they detect poor driving habits.
)
Car Insurance Discounts: Full List and How to Qualify
Most drivers qualify for multiple discounts, like bundling, safe driver, or good student discounts. Here are the biggest discounts, savings, and how to get them.
)
Top 10 Cheap Car Insurance Companies in July 2026
Country Financial and Auto-Owners have the cheapest rates, based on analysis of 190 million-plus Insurify quotes. Save time and money by comparing cheap car insurance quotes all in one place.
)
Best Companies for a Home and Auto Insurance Bundle in 2026
State Farm, Allstate, and Nationwide are the best insurers for home and auto insurance bundling.
)
Good Student Discount: What It Is and How It Works
Many car insurance companies offer discounts for young drivers who achieve good grades in school. Here’s how to get the savings.
)
Defensive Driving Discounts and Courses: What You Should Know
A defensive driving course can lead to lower car insurance premiums.
)
Katie PowersLicensed P&C Agent, Senior Insurance Editor
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
John LeachLicensed P&C Agent, Chief Copy Editor
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
Daniel RoccatoAdvisor
30+ years in financial services
Clinical Professor of Finance, University of San Diego
Konstantin HalachevVP of Engineering & Data Science
7+ years experience in data analysis
Ph.D. in Computational Biology