When insurance companies inquire about your driving habits, it’s not an intrusion into your privacy, but rather a way to gauge the risk you pose on the road. The logic is straightforward — the more time you spend driving, the higher the likelihood you will be involved in an accident. If you aren’t clocking as many miles on the odometer, you’re perceived as a lower risk, which could lead to lower insurance premiums.
This is where low-mileage car insurance enters the scene.
Tailored for individuals who drive fewer miles annually compared to the norm, this type of insurance can be a more cost-effective option as it mirrors the reduced risk associated with less road exposure. It stands apart from traditional car insurance that charges a flat rate no matter the mileage and from pay-per-mile insurance, which bills you for each mile you drive. By opting for low-mileage car insurance, you align your insurance costs more closely with your actual driving habits, potentially saving money while enjoying the necessary coverage.
Quick Look: Best Low Mileage Car Insurance Providers
- Best for Flexible Coverage Options: Nationwide
- Best for Safe Drivers: Travelers
- Best for Military Families: USAA
- Best for Overall Low-Mileage Savings: GEICO
- Best for Additional Discounts: State Farm
Best Low-Mileage Car Insurance Companies
These companies are excellent choices, extending discounts catered to the low-mileage driver, helping you save on premiums while enjoying the coverage you require.
1. Best for Flexible Coverage Options: Nationwide
Nationwide Mutual Insurance Co. provides a range of coverage options catering to low-mileage drivers. With programs like SmartMiles and SmartRide, it allows for both pay-per-mile and usage-based insurance, enabling drivers to choose a plan that best aligns with their driving habits and mileage. The company is recognized for its relatively affordable rates for those driving fewer miles annually, making it a solid choice for budget-conscious drivers.
Nationwide’s SmartMiles pay-per-mile program is ideal for those who wish to save by paying per mile driven. The SmartRide program offers discounts for good driving habits. These offerings underscore Nationwide’s commitment to providing tailored solutions for low-mileage drivers.
Pros
- Offers both pay-per-mile and usage-based insurance programs
- Relatively affordable rates for low-mileage drivers
- Available in 46 states and Washington, D.C.
Cons
- Average rating for collision repair
- Higher rates for drivers with a DUI or who caused an accident with injuries
2. Best for Safe Drivers: Travelers
Travelers Insurance is known for its low-mileage car insurance costs and its usage-based insurance program IntelliDrive, which rewards safe driving with discounts. The company also has a low level of complaints, indicating good customer satisfaction and reliable service. Its offerings like accident forgiveness and minor violation forgiveness add an extra layer of reassurance for policyholders.
Travelers provides a great price for loan/lease gap insurance, which can be a boon for drivers financing their vehicles. With its focus on promoting safe driving and providing forgiving policies, Travelers emerges as a solid choice for cautious, low-mileage drivers.
Pros
- Excellent low-mileage car insurance costs
- Usage-based program rewards safe driving with discounts
- Offers accident and minor violation forgiveness
Cons
- Higher costs for senior drivers and for adding a teen driver to a policy
- Not available in eight states including Alaska, Hawaii and Michigan.
3. Best for Military Families: USAA
USAA offers competitive low-mileage car insurance rates, especially catering to military members and their families. While the exact details of its low-mileage offerings aren’t specified, its reputation for providing affordable and comprehensive insurance solutions makes it a viable option for military families who tend to drive less.
Being a member-centric organization, USAA often goes the extra mile to ensure the satisfaction and financial well-being of its members. This, coupled with its competitive pricing for low-mileage drivers, makes USAA a noteworthy option for those eligible for membership.
Pros
- Competitive low-mileage car insurance rates
- Tailored services for military members and their families
Cons
- Membership is restricted to military members, veterans and their families
- Lack of transparency on low-mileage discount details
4. Best for Overall Low-Mileage Savings: GEICO
GEICO stands out for offering some of the best car insurance rates for low-mileage drivers. The company’s longstanding reputation for providing affordable insurance solutions aligns well with the needs of drivers seeking to save based on their low mileage.
GEICO’s easy-to-use online platform and mobile app make managing policies and filing claims straightforward and convenient. The lower premiums coupled with easy policy management make GEICO an attractive choice for low-mileage drivers seeking simplicity and savings.
Pros
- Offers the best car insurance rates for low-mileage drivers
- Easy policy management through online platform and mobile app
Cons
- May not offer as many tailored low-mileage programs as other providers
- Discounts may vary by state and eligibility
5. Best for Additional Discounts: State Farm
State Farm Insurance provides a good balance of low-mileage insurance rates and additional discounts that can further lower premiums. The company offers a notable discount of $115 for low-mileage insurance, bringing its average low-mileage premium to $1,481 per year.
Besides the low-mileage discount, State Farm offers a variety of other discounts and rewards programs that can be stacked for additional savings. This makes State Farm a great option for low-mileage drivers looking to maximize savings through various discounts.
Pros
- Provides a notable discount for low-mileage insurance
- Offers a variety of other discounts and rewards programs
Cons
- Average low-mileage premium is higher than GEICO’s rate
- Discount availability may vary by state and eligibility
Are You a Low-Mileage Driver?
Low-mileage drivers are typically defined by insurers as those who drive less than 7,000 to 9,000 miles per year, which is about half the national average. This classification arises from the lower likelihood of filing claims because of reduced road exposure.
On the other hand, drivers who drive more than the national average or 20 miles each way to work can expect to pay higher premiums.
Factors Affecting Low-Mileage Auto Insurance Rates
Here are some key factors that impact the rates you’ll pay for auto insurance as a low-mileage driver:
- Mileage brackets: Insurance rates may vary for different mileage ranges — 3,000, 8,000 or 11,000 miles per year.
- Driving history and location: These are crucial factors that can significantly affect insurance rates, regardless of mileage.
- Driving habits: Good driving habits can lead to lower premiums, especially in usage-based insurance programs.
How Low-Mileage Drivers Can Save on Car Insurance
Low-mileage drivers can save on car insurance in various ways, including:
- Low-mileage discounts: Some insurers offer discounts to drivers who keep their mileage low.
- Usage-based discounts: Programs like Nationwide’s SmartRide or Traveler’s IntelliDrive monitor driving habits to provide discounts to safe drivers.
- Mileage-based policies: Pay-per-mile programs, like Nationwide’s SmartMiles, charge based on the actual miles driven.
How to Maintain Low Mileage and Save on Car Insurance
Maintaining low mileage is a proactive way to potentially lower your car insurance premiums. Here are some practical tips to help keep those miles in check and possibly save on your insurance costs:
Use Alternative Transportation
- Whenever possible, opt for public transportation like buses or trains.
- Take advantage of local cycling paths or walking routes for shorter distances.
Carpooling
- Share rides with colleagues, neighbors or friends heading in the same direction.
- Consider joining or creating a carpooling group to split driving duties, reducing the mileage on your vehicle.
Explore Remote Work or Flexible Scheduling
- If your job allows, work from home to eliminate daily commuting.
- Discuss flexible scheduling options with your employer to commute during off-peak hours, which could also save time.
Consolidate Errands
- Plan your errands so that you can take care of multiple tasks in one trip, reducing the total distance driven.
- Whenever possible, choose local or nearby stores and service providers to minimize driving.
Avoid Rush Hour
- Traveling during rush hour can increase your time on the road. Plan your drives during less congested hours to minimize mileage.
Regular Vehicle Maintenance
- Keeping your car in top shape can help ensure fuel efficiency and reduce the need for extra trips to the mechanic.
Leverage Technology
- Use apps or GPS devices to find the shortest routes to your destinations.
- Explore car-sharing services for occasional use, which could be more cost-effective than owning a car if your driving needs are minimal.
Evaluate Your Driving Needs
- Reflect on your driving habits and consider whether you could reduce your mileage by adopting any of the above strategies.
Why Pay More?
Low-mileage discounts are a stellar way to trim down your insurance rates, particularly if your annual mileage is less than the national average. Why shell out more when you drive less? For further savings or to discover more insurance providers that could align with your distinct driving circumstances and save you money, delve into this comprehensive list. Your journey to more affordable car insurance could be just a click away.
Frequently Asked Questions
Is insurance cheaper with lower mileage?
Yes, insurance can be cheaper with lower mileage. Insurers often correlate the amount of miles driven with the risk of accidents — the less you drive, the lower the likelihood of being involved in a collision. Lower mileage can lead to lower insurance premiums.
What is considered low mileage per year for insurance?
Low mileage for insurance purposes is typically defined as driving less than 7,000 to 9,000 miles per year. However, the specific threshold for what constitutes low mileage can vary slightly between different insurance companies.
What coverage can you get with low-mileage car insurance?
With low-mileage car insurance, you can generally access the same types of coverage as with standard insurance policies, including liability, collision, comprehensive, medical payments and uninsured/underinsured motorist coverage. The primary difference is the potential for lower premiums because of the reduced mileage. Some insurers also offer special programs like pay-per-mile or usage-based insurance, which provide more personalized rates based on your driving habits and mileage.