Low-Mileage Car Insurance

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.

Driving less means fewer chances to get in an accident. Insurance companies know this and offer two ways to save: traditional low-mileage discounts or usage-based programs that track your actual driving.

Most car insurance companies classify drivers who travel fewer than 7,500 miles a year as low-mileage drivers, though the exact cutoff varies by insurer.

• Very low mileage: Under 5,000 miles per year (about 14 miles a day)
• Low mileage: 5,000 to 7,500 miles per year (14 to 21 miles a day)
• Moderate low mileage: 7,500 to 10,000 miles per year (21 to 27 miles a day)
• Average mileage: 10,000 to 15,000 miles per year (27 to 41 miles a day)
• High mileage: Over 15,000 miles per year (more than 41 miles a day)

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:

• Working remotely with minimal commuting
• Retired and driving occasionally for errands
• A college student with limited vehicle use
• Living in an urban area with public transit access

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:

Understanding exact discount thresholds helps you choose the right insurer and program. We researched specific requirements from major companies:

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.

State Farm's Drive Safe & Save program tracks your annual mileage and driving habits. You'll see discounts when your policy renews, including any mileage-based savings you already get.

If you don't drive much, you have three ways to save: traditional low-mileage discounts, pay-per-mile insurance, and usage-based insurance. Choose the option that best fits your driving habits.

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.

Don't make these common mistakes that could cost you money or coverage.

• Mileage estimation errors: Track your actual mileage for a month or two before applying. Most drivers forget about weekend trips, errands and road trips. If you underreport your mileage, your insurer might deny claims or cancel your policy.
• Program selection issues: Don't just pick the program with the biggest advertised discount. Think about whether you're comfortable with tracking technology, sharing your driving data and having your habits monitored.
• Documentation and compliance: Keep mileage records and tell your insurer if your driving habits change. For tracking programs, make sure your device or app works properly. If you use an app, remember to carry your phone when you drive.
• Missing opportunities: Check your low-mileage program each year to see if you're still getting the best deal. You can often stack low-mileage discounts with other discounts like bundling policies or good driver credits.

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.

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

We used this driver profile to estimate average car insurance costs across the U.S.:

• 40-year-old man
• Drives a Toyota Camry LE
• Has a clean driving record
• Logs about 12,000 miles per year

We used 12,000 miles per year as our baseline, even though it’s above the 7,500-mile limit for low-mileage drivers. Using a consistent number made it easier to compare rates across regions and coverage levels and to see which insurers give the best discounts to drivers who spend less time on the road.

Coverage Levels We Tested

For national averages, we analyzed 100/300/100 comprehensive and collision coverage with a $1,000 deductible:

• $100,000 bodily injury liability per person
• $300,000 bodily injury liability per accident
• $100,000 property damage liability

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.