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Car insurance for low-mileage drivers

Updated Jul 30, 2024
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

What is considered low mileage for car insurance?

Generally speaking, a low-mileage driver is someone who drives infrequently or drives under a specific number of miles each year. But for insurance purposes, the definition of a low-mileage driver will vary depending on the company. If you put fewer than 10,000 miles a year on your vehicle and aren’t taking advantage of car insurance for low-mileage drivers, you might be overpaying for coverage. Understanding what is considered low mileage for insurance may help you identify whether you could save with low-mileage coverage.

Although the overall driving rate in the U.S. does not appear to be declining dramatically, it is clear that certain groups are increasingly finding alternatives to frequent driving. These include the growing number of remote workers, urban dwellers who rely more on ridesharing services, stay-at-home parents and retirees.

Depending upon actual mileage driven annually, members of these groups may benefit substantially from a mileage-based premium insurance policy. Keep in mind that actual rates may vary depending on your true mileage, the insurance company chosen, the specifics of your low-mileage driving policy and discounts, among other factors.

How to save on car insurance as a low-mileage driver

When it comes to car insurance for low-mileage drivers, many of the best car insurance companies offer discounts for policyholders who drive less than the standard customer. Car insurers assume that those who are on the roads less often will not be as likely to have accidents. More recently, mileage- and usage-based policies have been specifically created with low-mileage drivers in mind to reward their infrequent driving and share special low-mileage insurance discounts.

Low-mileage drivers can save in a number of ways:

  • Low-mileage discounts: This is a traditional approach to reduce premiums by a percentage for driving less than a certain amount of miles. Often, the driver commits to reporting their miles driven with proof in the form of an odometer reading.
  • Usage-based discounts: This is a more recent technique to measure both mileage and safe driving habits through telematics, which uses GPS and other technology to track driving distance and behavior. For example, discounts may be based on driving during non-peak traffic hours, which are generally deemed safer, or by braking and accelerating gently.
  • Mileage-based policies: With this option, a driver’s miles can be measured with an app and premiums can be based on a modest base price plus an additional amount for every mile driven.

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Powered by Coverage.com (NPN: 19966249)

Advertising disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Car insurance companies for low-mileage drivers

If you consider yourself a low-mileage driver and do not expect to use your car for long trips over a period of time, it may be worth obtaining quotes for mileage-based car insurance. Additionally, if you are a safe driver, some insurers offer the opportunity to reduce your rates by measuring your current safe driving patterns and habits.

Typically, mileage-based insurance will set a fixed base rate determined from typical factors like age (except in Hawaii or Massachusetts), driving history and the vehicle driven. Above this, you will be charged a certain amount for each mile driven and measured through an insurer-provided device or smartphone app. Listed below are examples of car insurance companies that are making an impact in this market, but keep in mind that availability may be limited in some states. The best way to know if you qualify is to request a quote, many of which can be submitted quickly on a company’s website.

Root

Root was one of the first car insurance companies in the U.S. to be fully app-based. The app tracks both the number of miles driven and driving habits in order to set your premium. As such, premiums will vary from month to month, although Root does have a test-drive period to help you gauge how much your premium might be. Driving safely and avoiding hard braking and rapid acceleration can help keep premiums low, but you run the risk of being charged higher premiums if poor driving patterns are detected. For these reasons, the driver largely controls the premiums.

Metromile

Metromile, a division of Lemonade Insurance, is primarily a pay-per-mile auto insurance company. In all but a few of the states it serves, Metromile only collects data on how much you are driving. However, in Arizona, Illinois, Oregon and Virginia, the company also collects data on driving behavior like average speed and time of day. In those states where Metromile focuses purely on mileage and not driving behaviors, there are two components to the monthly premium. The base rate is quoted using traditional underwriting principles looking at driving history and other factors. The second component is tied directly to the number of miles you drive, which are measured by a company-provided device. Metromile is also unique from other low-mileage insurance companies in that the per-mile rate applies to the first 250 miles each day, or 150 miles for New Jersey drivers. After that, the additional miles are free of charge.

MileAuto

MileAuto is one of the newest companies in the mileage-based insurance business. It is similar in approach to Metromile in setting a base premium using traditional underwriting standards. The premium is then adjusted monthly based on the number of miles driven. MileAuto is unique in that it does not employ a telematics device or mobile app. Instead, drivers are reminded monthly via email and text to take a photo of their odometer. Although this could be an additional task every month, it could be ideal for drivers who may have privacy concerns over other more intrusive data collection methods.

Milewise from Allstate

Milewise is a pay-per-mile-based insurance policy, but brings with it the resources and credibility of a well-known traditional insurer through Allstate. Also using a plug-in device, Milewise measures driving miles as well as behaviors. These, in turn, set the fluctuating monthly rate, which combined with a traditional base rate, sets the premiums. With a feedback loop on its app, Milewise also provides an opportunity for the insured to improve driving habits.

Noblr

Like others above, Noblr assesses driving habits and miles via its mobile app and uses the data to set monthly premiums. However, Noblr goes beyond this and looks at certain unique patterns in driving behavior other than the number of miles or braking habits. For example, Noblr assesses risk by also reviewing the driver’s road choices and monitoring cellular phone usage to measure, and hopefully discourage, texting and driving. It also tracks the time of day you drive and road choices, such as highway or street, but keep in mind that rating factors can vary by state regulations. Noblr is owned by USAA and is only available to USAA members. Only active-duty and retired military, as well as their qualifying family members, are eligible.

Lemonade

Although currently only available in Arizona, Illinois, Ohio, Oregon, Tennessee, Texas and Washington, Lemonade now provides car insurance to drivers with a focus on personalization. Like some of the other companies on this list, Lemonade also uses telematics data collected through its mobile app to track drivers’ mileage and driving habits and set their insurance rates. There are also additional discounts for low-mileage and safe drivers.

Pay-per-mile vs. usage-based insurance

Although these two types of car insurance sound similar and can benefit low-mileage drivers, they are slightly different. Both options come with trade-offs that a driver must consider when choosing car insurance coverage that utilizes telematics.

What is pay-per-mile insurance?

With pay-per-mile insurance, drivers are charged a base rate plus a per-mile rate to determine their monthly premium.

Who it may be good for:

  • May be a great fit for drivers who rarely drive and/or drive far less than the national average
  • People seeking a cheaper car insurance option

Who it may not be good for:

  • People who are worried about data collection and other potential privacy concerns that are required to opt into a telematics insurance program
  • People who drive an older vehicle that may not be eligible for such a program

What is usage-based insurance?

With usage-based insurance, the insurance company may use a telematics device or your phone to track driving habits and mileage. It takes into account driving history, distance traveled and other factors.

Who it may be good for:

  • May benefit drivers regardless of annual mileage
  • People looking to receive a discount for good driving behaviors

Who it may not be good for:

  • People who have privacy concerns regarding tracking technology
  • People with a history of reckless driving or other risky behavior

Frequently asked questions