Why you can trust The Zebra

The Zebra partners with some of the companies we write about. However, our content is written and reviewed by an independent team of editors and licensed agents. Reference our data methodology and learn more about how we make money.

Author profile picture

Ross Martin

Insurance Writer

  • 4+ years in the Insurance Industry

Ross joined The Zebra as a writer and researcher in 2019. He specializes in writing insurance content to help shoppers make informed decisions.

Ross h…

Can low-mileage drivers save money on car insurance?

Low-mileage drivers can pay less for car insurance, but they may need to look beyond standard car insurance policies to find real discounts. Until recently, low-mileage drivers had few opportunities to receive cheaper car insurance quotes. With the advent of new technology — and broader changes to the driving habits of many Americans — more car insurance companies are offering opportunities for low-mileage drivers to save money. But these opportunities can vary based on your insurance company (and even your location). 

In our guide to car insurance as a low-mileage driver, we'll review some of the best ways to save on car insurance, including simple low mileage discounts, telematics and pay-per-mile car insurance. 

What are the best insurance options for low-mileage drivers?

In researching the top car insurance providers, we found that low-mileage drivers can find the cheapest insurance coverage from USAA and State Farm. Using the driver profile from our methodology, we surveyed eight top insurance companies to see which one offered the cheapest premiums for low-mileage drivers.

Average Premiums for Low Mileage Drivers by Company
Company Avg. Monthly Premium Avg. Annual Premium
USAA $103 $1,239
State Farm $128 $1,533
Progressive $143 $1,711
Nationwide $148 $1,774
GEICO $169 $2,026
Farmers $169 $2,028
Allstate $223 $2,676

Paying too much for car insurance?

Location pin icon
No junk mail. No spam calls. Free quotes.

The Zebra’s Dynamic Insurance Rating Tool data methodology

The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.

The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.

For a comprehensive understanding, see our detailed methodology.

Telematics for low-mileage drivers

More and more insurance companies are offering offer telematics insurance programs to offer savings to safe and low-mileage drivers. A telematics program typically monitors your mileage and driving behavior through an app on your phone or with a plug-in device to determine your car insurance premium. Most start with a base rate, which is then adjusted to correspond with your driving habits. This way the insurer can more accurately predict the kind of client you will be and more accurately price your premium. For instance, things like hard braking are even your average speed can be monitored by your insurer. Safe driving can lead to lower rates overall.

Telematics Program Estimated Savings
Progressive Snapshot Average of $130
GEICO DriveEasy Varies
Allstate Drivewise Average of 10-25%
State Farm Drive Safe & Save Up to 15%
Esurance DriveSense Varies
Nationwide SmartRide Up to 40%
Liberty Mutual RightTrack Average of 5-30%

If you're looking for a company-by-company analysis of telematics programs, consult our telematics guide.


Pay-per-mile car insurance

Another way to find car insurance as a low-mileage driver is to shop policies from pay-per-mile or usage-based insurance (UBI) companies. The benefit of telematics for low-mileage drivers is that you essentially only pay for the insurance you need. It's a "pay as you go" — or "pay as you drive" — version of car insurance, weighing your driving activity alongside traditional rating factors such as credit score, age, homeowner status and location. 

While many companies offer telematics programs, they're not truly usage-based insurance companies. Metromile, briefly detailed below, operates on a true "pay-as-you-go" model. If you're looking for insurance companies with telematics programs, consider the following options. Keep in mind: pay-per-mile telematics car insurance programs may not be available in every state.



Compared to the insurance companies mentioned above, Metromile is relatively new to the world of car insurance. Metromile sets a base monthly rate, after which your premium is generated on a per-mile basis. You'll receive a plug-in device that fits into your vehicle's onboard diagnostics port (OBD-II). There's also a corresponding app that you can download to keep up with billing and even find your car if you've forgotten where you parked. The company offers full coverage options that you would expect to find from conventional insurance companies.


Root Car Insurance

Root's philosophy is based on the idea of "car insurance for how you drive, rather than who you are." Instead of relying on credit score and age to price its policies, Root uses your driving habits to determine premiums. If you're a low-mileage driver, this might be a good option for you.


Allstate Milewise

Allstate's pay-per-mile insurance program is similar to those above, starting with a base rate upon which charges are added for additional miles driven. Similar to Metromile, Milewise uses a plug-in device and a corresponding app to keep track of driving habits and mileage. 


Nationwide Smartmiles

Nationwide's Smartmiles program is designed for those who rarely drive, but still want to keep a car for occasional use. Motorists pay per mile on top of a base rate. Nationwide offers car insurance discounts for safe drivers through this program. 


Mile Auto

Mile Auto is a newcomer in the insurance space. The company's car insurance coverage is relatively straightforward, offering basic liability and full coverage options for low-mileage drivers. Unlike other pay-per-mile car insurance companies, Mile Auto claims to value your privacy, not requiring a tracking component such as an app or plug-in device. The company has drivers snap a photo of their odometer once a month to determine the amount driven.

What exactly is a low-mileage driver?

Most insurance providers consider someone who drives between 0 and 7,500 miles per year a "low-mileage driver." Most insurance consumers are initially rated by default at the standard U.S. average mileage of 12,000 miles per year. However, some motorists drive far fewer than 12,000 miles per year.

See below the amounts by which your auto insurance rates can change based solely on your annual mileage.

Average rates by Annual Mileage
Annual Mileage Avg. Annual Premium
0-7500 $1,710
7501-10000 $1,760
10001-15000 $1,795
15001+ $1,826

This is a general estimate of how car insurance costs change depending on mileage. While the average difference in car insurance costs between those who drive fewer than 7,500 miles annually and those who cover 15,000-plus miles is just $86, occasional drivers save up to $436 per year in California. A low-mileage driver in California will save more money than an infrequent motorist in Texas.

How to find insurance as a low-mileage driver

If you're looking for low-mileage car insurance, seek out the insurance programs that cater specifically to you. As we've demonstrated, the only true low mileage discount you are likely to receive — without looking into a specific UBI program — is if you live in California. Outside of that, the savings are quite small. While many major car insurance companies offer telematic programs, true pay-per-mile programs from companies like Nationwide and Metromile are good places to start. Get started on your search for low-mileage car insurance quotes by entering your ZIP code below. 

Find the right policy in only a few minutes.

Location pin icon
No junk mail. No spam calls. Free quotes.

About The Zebra

The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.

  • The Zebra’s insurance content is written and reviewed for accuracy by licensed insurance agents.
  • The Zebra’s insurance editorial content is not subject to review or alteration by insurance companies or partners.
  • The Zebra’s editorial team operates independently of the company’s partnerships and commercialization interests, publishing unbiased information for consumer benefit.
  • The auto insurance rates published on The Zebra’s pages are based on a comprehensive analysis of car insurance pricing data, evaluating more than 83 million insurance rates from across the United States.