Updated: October 22, 2025
Advertising & Editorial Disclosure
Remote workers, retirees, college students and urban dwellers with alternative transportation often see the best savings from low-mileage car insurance programs.
GEICO offers the most affordable coverage for low-mileage drivers, at $1,223 per year (approximately $102 monthly). State Farm provides the largest low-mileage discount, at $115 annually.
Pay-per-mile insurance works best for drivers logging fewer miles consistently, but it may not be ideal for drivers with a regular commute. Nationwide is the best company for pay-per-mile plans.
Low-mileage car insurance provides financial protection for drivers who spend less time on the road than average. Americans drive over 13,000 miles per year on average, according to the Federal Highway Administration, making anyone driving under 7,500 miles annually eligible for substantial savings.
Insurance companies recognize that driving less lowers accident risk. Major insurers offer traditional low-mileage discounts or usage-based programs that reward infrequent driving.
Most insurers consider drivers who travel fewer than 7,500 miles per year as low-mileage drivers, though thresholds vary by company:
If you drive fewer than 7,500 miles a year, you might be spending more than necessary on standard car insurance. The good news is that you may qualify for discounts or special programs that lower your premiums and help you pay only for the coverage you actually need. Pay-per-mile insurance can offer big savings for retirees, remote workers, and those who rely mostly on public transportation.
Consider low-mileage options if you're:
Pay-per-mile programs work best for drivers who consistently travel very few miles throughout the year.
We contacted customer service departments at major insurers and analyzed their low-mileage programs. Our top picks:
Lowest average rates for most drivers
Easy-to-use online tools for policy management
Traditional discount approach with no technology requirements
Multiple stackable discounts (multi-policy, safe driver, vehicle safety features)
Simple qualification process through self-reported mileage
Limited to traditional discount programs (no pay-per-mile options)
May require periodic mileage verification
May not offer maximum savings for extremely low-mileage drivers
GEICO offers the cheapest car insurance for low-mileage drivers. Its competitive rates and easy-to-use online tools make it one of the best choices in this category. A GEICO policy averages $1,223 per year, or about $102 per month, and the company also provides a telematics discount for drivers who use its tracking program.
Note: The rates above are based on 12,000 miles per year, which represents standard driving. Although this is higher than the 7,500-mile average for low-mileage drivers, it provides a consistent baseline for comparing costs across insurers.
Offers low-mileage discount (<7,500 miles)
The Drive Safe & Save program offers potentially larger savings
Local agent network for personalized guidance
Flexibility between traditional and technology-based programs
May have higher base rates than some competitors
Traditional discounts require mileage proof
Drive Safe & Save program availability varies by state
State Farm ranks as our top pick for drivers who want low-mileage discounts. The company offers a $115 reduction, lowering its average premium from $1,643 to $1,528 per year (about $127 per month). Although that’s still $305 more than GEICO’s rate, State Farm’s strong customer service and discount options make it a solid choice.
Drivers can also save more through State Farm’s usage-based program, Drive Safe & Save, which offers discounts of up to 30% based on your driving habits.
Note: The rates above are based on 12,000 miles per year, the standard benchmark for most insurance comparisons. While this is higher than the 7,500-mile average for low-mileage drivers, it provides a consistent baseline for comparing costs.
Pay-per-mile pricing that directly correlates costs with actual usage
Daily mileage cap of 250 miles protects against high bills during road trips
Substantial savings potential for consistently low-mileage drivers
Offers safe driving discounts
Available in 40 states
Requires plug-in device installation and ongoing technology use
Monthly costs fluctuate based on actual driving (less predictable)
May not be cost-effective for drivers with variable or higher mileage
Limited to vehicles with OBD-II ports (1996 and newer)
Not available in all states
Nationwide is our top pick for pay-per-mile car insurance. Available in 40 states, it’s the most widely accessible option in this category. The company’s SmartMiles program offers discounts of up to 10% for safe driving. Nationwide also charges only for the first 250 miles driven per day, making it a great choice for drivers who take occasional long trips.
Just because a company offers a low-mileage discount doesn't mean it has the lowest rate. Compare quotes from multiple insurers and evaluate different program types to maximize your savings.
Understanding exact discount thresholds helps you choose the right insurer and program. We researched specific requirements from major companies:
Company | Mileage Threshold | Discount Amount | Verification Method |
|---|---|---|---|
State Farm | 7,500 miles | $115 annually | Annual odometer reading |
7,500 miles | Variable | Annual verification | |
American Family | 7,500 miles | Variable | Self-reported |
State Farm representatives contact customers annually to collect odometer information and confirm continued eligibility. USAA offers similar programs but only serves military members, veterans, and their families.
Company | Program Name | Tracking Method | Potential Savings |
|---|---|---|---|
Nationwide | SmartMiles | Device/Connected car | Up to 10% |
State Farm | Drive Safe & Save | App/Device | Up to 30% |
GEICO | DriveEasy | Mobile app | Up to 25% |
Progressive | Snapshot | Device | Up to 30% |
State Farm's Drive Safe & Save program tracks annual mileage and basic driving characteristics, with discounts updated at each renewal. The program includes any previous mileage-based premium reductions you received.
For drivers looking for the most affordable coverage for infrequent driving, there are three primary types of low-mileage policies: traditional low-mileage discounts, pay-per-mile insurance and usage-based insurance. Understanding how each option works helps determine the best financial value for your situation.
Program Type | Cost Structure | Common Threshold | Break-Even Analysis | Best For |
|---|---|---|---|---|
Traditional Low-Mileage Discounts | Standard premium with discount applied | 7,500 miles or less annually |
| Drivers who can verify low mileage and prefer simple discount structure |
Pay-Per-Mile Insurance | Base monthly rate + per-mile fee | Under 10,000 miles annually |
| Drivers with reduced annual mileage who want precise usage-based pricing |
Usage-Based Insurance (UBI) | Standard premium with behavior-based discounts | Variable thresholds based on overall driving behavior |
| Safe drivers comfortable with technology who want maximum savings potential |
Choose a program based on your verified annual mileage and comfort with technology:
Getting low-mileage savings requires understanding qualification requirements and actively pursuing available programs.
Set your car's odometer to zero and wait one week. After one week, note the miles you've driven. Multiply that figure by 52 to estimate your annual mileage. For more accuracy, review maintenance records from the past year and compare odometer readings.
Call your insurance company and ask about low-mileage discount availability, required documentation, verification procedures and potential savings. Many insurers don't automatically apply these discounts.
Even if a company offers a low-mileage discount, it might not have the cheapest overall rate. Request quotes from:
This comparison helps you find the best combination of base rates and low-mileage savings.
Be prepared to submit:
Some insurers accept self-reported information, while others require photos or in-person verification.
Your discount stays active as long as you continue driving fewer than 7,500 miles each year. Respond promptly to verification requests and notify your insurer of any changes affecting your eligibility. State Farm contacts customers annually, while pay-per-mile programs monitor usage automatically.
Insurance companies verify your low-mileage status through various methods. Initially, you may need to provide odometer readings or photos, show maintenance records or allow technology-based tracking to confirm your reported mileage. Ongoing verification often includes annual odometer check-ins, policy renewal reviews or continuous monitoring through telematics devices or smartphone apps.
When searching for the best and most affordable low-mileage car insurance policy, compare quotes from multiple providers offering different program types. This helps you get an accurate estimate of how much your plan may cost. Our calculator below can give you personalized quotes from different insurers in minutes.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Oct 26, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 |  State Farm | 83 /of 100 | $118 |
| 4 |  Travelers | 83 /of 100 | $129 |
| 5 |  Progressive | 79 /of 100 | $133 |
| 6 |  Farmers | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Online quotes are estimates, so your specific rates may be higher or lower than a sample quote reflects. Talk to an insurance agent or other representative to ensure all eligible discounts are applied to your premium, including traditional low-mileage discounts and usage-based program options.
Avoiding frequent errors helps you maximize your low-mileage insurance benefits.
Insurance companies calculate rates for low-mileage drivers using a systematic approach, combining traditional risk assessment with mileage-specific adjustments.
Insurers start by calculating your base premium using standard factors like age, driving record and vehicle type. This serves as the foundation for all subsequent adjustments and represents what you would pay without any mileage considerations.
Companies often classify drivers into distinct mileage tiers:
Insurance companies apply mathematical formulas to adjust your premium based on mileage data. The standard calculation follows this pattern:
Adjusted Premium = Base Premium × Mileage Factor × Other Rating Factors
The mileage factor usually ranges from 0.85 to 0.95 for very low-mileage drivers to 1.15 to 1.35 for high-mileage drivers.
Insurers incorporate additional discounts and fees to arrive at your final premium after applying mileage adjustments. Low-mileage drivers may see 5% to 20% reductions from their base premium, with some policies offering discounts of up to 40% for drivers with extremely low annual mileage.
Taking advantage of a low-mileage discount saves money, but you have more options. Compare quotes from multiple insurers and different program types, clean up your driving record, improve your credit score and bundle your insurance policies.
If you don't have loans on your vehicle and can afford to replace it out of pocket, carrying liability-only coverage reduces your overall insurance costs.
Low-mileage drivers can save on car insurance through traditional discounts, pay-per-mile policies or usage-based insurance programs. GEICO consistently offers the most competitive overall rates through its traditional discount program, while Nationwide leads the pay-per-mile market.
State Farm provides the biggest discount, but that doesn't mean you'll pay the least overall. Its regular rates could still be higher than another company's discounted price.
Maximize your savings by being honest about how much you drive. A 30% discount sounds great, but if you're starting with a $2,000 premium, you still pay more than someone who gets 15% off a $1,200 policy.
Periodically reassess whether your current program continues to offer the best value or if switching programs or carriers could provide better savings.
Below, we answer questions about qualifying for discounts, the best program types for savings and whether pay-per-mile insurance is a better option for you.
Most insurers consider under 7,500 miles per year as low mileage, but requirements vary by provider and program type. Some set limits as low as 5,000 miles annually, while others use 10,000 miles as their cutoff.
Compare program options carefully. Traditional discounts provide predictable savings, but usage-based and pay-per-mile programs often deliver the highest overall savings for qualifying low-mileage drivers.
Among major insurers, State Farm provides the largest discount at $115 annually, but GEICO offers the lowest overall premiums at an average of $1,223 per year.
Pay-per-mile insurance can be ideal for very low-mileage drivers who log fewer than 26 miles weekly. Traditional discounts often provide better value for drivers with slightly higher mileage.
Drivers save an average of $86 per year with low-mileage car insurance. Individual savings vary based on base premiums, chosen program type and specific driving patterns, with some policies offering discounts of up to 40%.
If you drive less than 7,500 miles annually, check if you qualify for low-mileage discounts. If you drive less than 26 miles per week, consider pay-per-mile insurance as well.
Insurers use various methods to verify low mileage, including odometer readings, telematics devices, smartphone apps or annual inspections, to confirm your actual driving patterns and maintain discount eligibility. Verification methods include annual odometer readings, periodic inspections, telematics devices, smartphone apps and self-reporting with spot checks.
Exceeding your estimated annual mileage may result in a discount reduction or removal. To avoid policy complications, contact your insurer promptly if your driving patterns change.
Yes, telematics programs collect detailed driving data, including location, speed and time patterns. Review privacy policies carefully and consider discount-only programs that can't increase your rates.
Yes, most insurers allow you to stack multiple discounts, including low-mileage, multi-policy, safe driver and good student discounts, for maximum premium reduction.
If you're driving fewer than 7,500 miles annually, you deserve rates that reflect your reduced time on the road. We built this research to identify which insurers actually reward infrequent drivers with meaningful discounts and which coverage levels protect you without the premium prices designed for daily commuters.
How We Analyzed Low-Mileage Driver Rates
We gathered 22,848 quotes from six major insurers across 100 ZIP codes. Our data sources included state insurance departments and Quadrant Information Services, allowing us to compare how different companies price policies for various mileage levels and coverage scenarios.
Sample Driver Profile
To estimate average car insurance costs across the U.S., we used a standardized driver profile:
We used 12,000 annual miles as our baseline despite it exceeding the 7,500-mile low-mileage threshold. This let us establish standard rates across regions and coverage levels, then identify which insurers offer the most substantial reductions when you drive less.
Coverage Levels We Tested
For national averages, we analyzed 100/300/100 comprehensive and collision coverage with a $1,000 deductible:
State-specific comparisons used 50/100/50 comprehensive and collision coverage with the same $1,000 deductible, representing budget-conscious coverage that still provides solid financial protection.
Why This Approach Works for Low-Mileage Drivers
Lower annual mileage reduces accident risk, but not all insurers price policies accordingly. Our research identifies companies that recognize your reduced road exposure and translate it into real savings.
The comprehensive and collision coverage we tested protects you financially whether your parked car gets damaged or you're in a rare accident.
Compare rates from multiple insurers. The company advertising the biggest low-mileage discount percentage doesn't always deliver the lowest total premium.
Learn more about MoneyGeek's methodology.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
