Car Insurance for Low-Mileage Drivers
- Low mileage drivers can save with mileage-based discounts, telematics programs or pay-per-mile policies.
- The cheapest company for low-mileage drivers is Travelers ($138/mo)
Compare quotes to find the cheapest rate for your driving habits.
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 this guide, 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. 6 Mo. Premium |
|---|---|
| 0-7500 | $1,222 |
| 7501-10000 | $1,263 |
| 10001-15000 | $1,297 |
| 15001+ | $1,327 |
Source: The Zebra
Keep in mind, savings will 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:
Option 1: Standard insurance with a low-mileage discount
Plenty of large insurance carriers offer discounts based on mileage. Though not always explicitly stated as a spereate discount, insurance companies take annual mileage into account when rating your policy. Typically, fewer miles means lower premiums— but the differences can be minimal.
🔔 Cheapest car insurance company: Travelers
💡 American Family's MilesMyWay discount offers 25% off to drivers who drive less than 8,000 miles annually[2]
Standard insurance companies tend to offer more robust coverage options
It is fairly simple to enroll in a low-mileage discount with your current insurance provider
No telematics device or mobile app required
Not available with every insurance company
Different insurance companies may have different thresholds for low mileage
Updating data...
| Company | Avg. 6 Mo. Premium | Avg. Monthly Premium |
|---|---|---|
| Farmers | $1,368 | $228 |
| GEICO | $945 | $158 |
| Nationwide | $1,242 | $207 |
| Progressive | $1,173 | $196 |
| Travelers | $830 | $138 |
| USAA | $885 | $147 |
| Allstate | $1,690 | $282 |
| State Farm | $1,215 | $202 |
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.
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.
Think of telematics as a program built into your car insurance policy—not a separate policy on its own—that rewards safe driving habits with lower premiums. Many major insurance companies offer telematics programs.
💰 Telematics program pricing starts with a base rate, which is then adjusted to correspond with your driving habits.
Can offer substantial discounts to insurance premiums
Telematics programs are becoming more widely available, so you may be able to find a program with your current insurer
Telematics devices collect data, so drivers wary of this may want to steer clear
Even if your lifestyle means you drive fewer miles, driving at night could be used against you with usage-based insurance
| 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% |
Car Insurance with Telematics
Is usage-based car insurance the way to go, or is it cheaper to get traditional car insurance without telematics?
Option 3: Pay-per-mile car insurance
Low-mileage drivers might save with pay-per-mile insurance, which charges based on how much you drive. It’s a “pay as you go” model that factors in mileage along with traditional rating factors like credit, age, location, and more.
Not all telematics programs work this way—Metromile is one of the few true pay-per-mile options. Availability varies by state.
🏆 Our pick for pay-per-mile insurance: Lemonade
For true low-mileage drivers, this can be the cheapest option
Good for remote workers, retirees, and college students who drive little and only need basic coverage
Pay-per-mile programs often lack extensive coverage options and endorsements
Much like UBI, sharing data is required via device or mobile app, so drivers who are uncomfortable with this should avoid
- Lemonade (Metromile)
- Root
- Allstate Milewise
- Nationwide Smartmiles
- Mile Auto
Pay-Per-Mile Car Insurance
Pay-per-mile car insurance works by tracking your mileage to determine your rate. Use our guide to learn if pay-per-mile car insurance is the best option for you.
Pay-per-mile and telematics insurance both use driving data, but differently. Pay-per-mile focuses on how much you drive, while telematics tracks how you drive—like speeding, hard braking, and late-night trips—to better assess your risk.
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.
Low mileage insurance: FAQs
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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.