Car Insurance for Low-Mileage Drivers
Use The Zebra to get car insurance for low-mileage drivers from GEICO, Progressive, Nationwide, Liberty Mutual and Allstate (+100 other companies)
Can low-mileage drivers save money on car insurance?
Are you driving less these days? Low-mileage drivers can pay less for car insurance, but they may need to look beyond standard car insurance policies to find real discounts. According to our data, 34% of Zebra customers say they drive less than 7,500 miles per year.[1] 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.
If you're comfortable with your driving habits being monitored, a usage-based insurance company might be worth considering. But if privacy is a concern, a low-mileage discount from a traditional insurance company could be a better fit.
Jeremy Garza — Licensed insurance advisor at The Zebra
What is considered low-mileage?
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.
Updating data...
| Annual Mileage | Avg. Annual Premium |
|---|---|
| 0-7500 | $1,710 |
| 7501-10000 | $1,760 |
| 10001-15000 | $1,795 |
| 15001+ | $1,826 |
Source: The Zebra
This is a general estimate of how car insurance costs change depending on mileage. The average difference in car insurance costs between folks who drive fewer than 7,500 miles annually and those who cover 15,000-plus miles is just $86. However, savings vary by state. This is because low mileage rates depend on state insurance regulations; for example, occasional drivers save up to $436 per year in California because California law requires insurance companies to rate policies based on annual mileage costs. A low-mileage driver in California will save more money than an infrequent motorist in Texas.
Drive less? Pay less.
Get 4 key insights on finding cheaper rates, plus a price tracker that finds the best rate for your driving habits.
What are the best insurance options for low-mileage drivers?
There are three common ways that drivers can find cheap car insurance tailored to a low-mileage lifestyle:Â
Firstly, drivers may select to enroll in a low-mileage discount offered by a standard auto insurance company. This is a common discount opportunity available from many major insurers. Let's explore this option first.Â
Option 1: Standard insurance with a low-mileage discount
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. See the table below for average premiums by annual mileage from these companies.
Updating data...
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| Allstate | $1,173 | $196 |
| State Farm | $715 | $119 |
| GEICO | $729 | $122 |
| Farmers | $880 | $147 |
| Nationwide | $724 | $121 |
| Progressive | $933 | $155 |
| USAA | $656 | $109 |
Source: The Zebra
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.
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Standard insurance companies tend to offer more robust coverage options
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It is fairly simple to enroll in a low-mileage discount with your current insurance provider
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No telematics device or mobile app required
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Not available with every insurance company
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Different insurance companies may have different thresholds for low mileage
Paying too much for car insurance?
Option 2: Usage-based insurance (telematics)
Usage-based insurance (UBI) is typically measured by a mobile app or in-vehicle device that tracks your car's mileage and your driving habits like hard breaking, fast accelerations, distracted driving, and more. This is most often referred to as telematics.
More and more insurance companies are incorporating telematics insurance programs to offer savings to safe and low-mileage drivers. Most start with a base rate, which is then adjusted to correspond with your driving habits. This way the insurer can predict the kind of client you will be and more accurately price your premium. Check out the table below for the telematics programs offered by major insurance companies.Â
| 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% |
| Nationwide SmartRide | Up to 40% |
| Liberty Mutual RightTrack | Average of 5-30% |
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Can offer substantial discounts to insurance premiums
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Telematics programs are becoming more widely available, so you may be able to find a program with your current insurer
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Telematics devices collect data, so drivers wary of this may want to steer clear
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Even if your lifestyle means you drive fewer miles, driving at night could be used against you with usage-based insurance
Option 3: Pay-per-mile car insurance
Another way to find car insurance as a low-mileage driver is to shop policies from pay-per-mile companies. The benefit of this 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 all pay-per-mile companies. Metromile, briefly detailed below, operates on a true "pay-as-you-go" model. Keep in mind: pay-per-mile car insurance programs may not be available in every state.
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For true low-mileage drivers, this can be the cheapest option
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Good for remote workers, retirees, and college students who drive little and only need basic coverage
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Pay-per-mile programs often lack extensive coverage options and endorsements
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Much like UBI, sharing data is required via device or mobile app, so drivers who are uncomfortable with this should avoid
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'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'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.Â
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.Â
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.
Pay-per-mile and telematics-driven insurance policies are similar but use different metrics to calculate your premium. Pay-per-mile auto insurance does not take into consideration your driving habits or behaviors, while telematics auto insurance relies upon driving behavior metrics to assign your premium. A telematics device will track abrupt braking, sharp turns, high speeds, and late-night driving to assess the risk you present to your insurance company. By using this granular data, telematics offers a holistic examination of your driving profile.
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.
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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.