What Is the Low Mileage Discount?

Driving less can keep you out of trouble, and it can also get you a car insurance discount. Learn more about how you could get it.
Man in car

Your auto insurance company may look at your car’s yearly mileage when deciding your rates. The reason is simple: you’re at a higher risk to get into a car accident if you drive more often. Staying off the road is a great way to help keep you out of trouble. You could save money on car insurance if you drive less and keep your mileage low.

It’s not uncommon to hear about a “low mileage discount” or “low mileage insurance” that you can get from your auto insurer. You normally won’t find a car insurance company that offers a named discount for low mileage. But most track or ask about how much you drive. This can end up affecting your rates.

Your annual mileage is one of many factors that determine your auto insurance rates. Many insurance providers see heavy or frequent drivers as a risk to get into accidents and, as a result, cost them more money. This means that if you drive less, you’ll look like less of a risk and could get a discount from your insurance company.

Every insurer handles discounts or savings for low mileage differently. They likely won’t name it a “low mileage discount” or might not call it anything at all. The amount you save by keeping your mileage low will vary based on your insurance provider and situation.

This article will help you understand how you can get low mileage savings or discounts from your car insurance company. We’ll talk about how much you can save and provide info about the top insurance companies.

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How to Save on Auto Insurance with Low Mileage

You can potentially save on your car insurance if you drive less than a certain number of miles per year. Depending on your insurer, this number is usually somewhere around 7,000 to 12,000 miles per year. It can sometimes be more.

However, keep in mind that insurance companies typically won’t have a specific low mileage discount. Most won’t give it a name but will still reward you with a discount if you can keep your mileage under a certain threshold.

Some companies may want you to use a telematics device that records your actual driving habits. This could be in the form of a physical device you install in your car or a mobile app from your provider. Insurers often use these to track safe driving and include mileage as a factor that shows how safe of a driver you are. Below is a list of common things your insurer may track with telematics:

  • Your speed
  • Your acceleration
  • How hard you brake
  • Your miles driven
  • When you drive

Who Can Save For Having Low Mileage?

Almost anyone can save for having low yearly mileage. But there are certain groups of people that are more likely to save than others. For example, someone who works from home probably has a better chance of saving than someone who drives many miles to work every day.

You’ll likely have low mileage and, therefore, pay less for car insurance if:

  • You work from home. Besides saving you from stress, working from home can save your car from the eventual mileage of a daily commute.
  • You’re a carpooler. Carpooling with friends or co-workers can help keep your car’s miles down. Even if you sometimes use your car to carpool, you’ll still come out ahead.
  • You frequently use public transportation. Using public commute options such as buses, light rails, or trains can help you avoid unneeded miles on your car.
  • You’re a student. Students who are away at college might not need their car that much if their campus has everything they need. College students who leave their car at home will also avoid racking up mileage and could even qualify for the student away discount.
  • You’re retired or a senior citizen. You likely don’t need to drive to work every day if you’re retired. This will help your annual mileage stay low and help you save on car insurance, which can be higher for people 60 and older.

Who Offers Low Mileage Discounts?

Several of the leading auto insurance companies will offer savings or discounts to low mileage drivers. Many of them do this by estimating your driving activity with telematics. This is usually a part of many insurers’ safe driving programs.

Insurance companies may also offer pay-per-mile or usage-based insurance (UBI) options. These alternative policies and plans help you pay only for the miles you drive, allowing you to shell out less for insurance each month.

Note: some discounts aren’t available in every state. Contact your insurer to see if you’re able to get a discount.

The following is a list of auto insurance companies that offer low mileage savings:

State Farm

You’ll save on car insurance from State Farm if you keep your driving activity down. State Farm also has a program called Drive Safe & Save that tracks your driving habits. This program could save you up to 30% on car insurance. You can use it as a mobile app or through OnStar.

The Drive Safe & Save program allows State Farm to estimate your mileage, potentially making it easier to claim your discount. Be aware that you could lose your State Farm low mileage discount if they see that you drive too much.

Nationwide

Nationwide doesn’t have a named low mileage discount. Rather, they offer a pay-per-mile program called SmartMiles. With this program, you’d pay a base rate and a varying monthly rate depending on how much you drive. SmartMiles uses telematics to track your mileage and help you save on insurance if you can drive less frequently.

GEICO

Like other providers, GEICO might use your annual mileage as a factor when they figure out your rates. But they don’t have an actual low mileage discount.

GEICO also has a program named DriveEasy that lets them give you discounts for safe driving. To get started, you’ll have to install GEICO’s mobile app and sign up. The app monitors your driving behavior, including how far you drive. In this way, you may be able to get a discount from GEICO for being a low mileage driver.

Allstate

Though they don’t have a low mileage discount, Allstate offers a pay-per-mile car insurance policy called Milewise. Allstate says that Milewise can allow you to save anywhere from 20 to 72% on your auto coverage if you drive at or below 10,000 miles per year. Milewise comes with a daily base rate and a per-mile rate. Be aware that Milewise is not available in every state. Contact your Allstate agent for more information.

Progressive

Progressive might take your mileage into account when they decide your rates, but they don’t have a low mileage discount. Instead, their Snapshot program may give you a chance at a discount if you don’t drive all that much.

Like other insurers’ safe driving programs, Progressive’s Snapshot uses telematics to check your driving habits and give you discounts. Your miles driven is one of the habits they keep an eye on. You’ll need to download the app or plug a device into your car to use it.

USAA

USAA will give you a discount on your auto insurance if you aren’t a frequent driver. They’ll also give you a discount of up to 60% off your coverage if you need to store your car for any reason. Contact your USAA agent to find out exactly how much you can save, whether it’s available in your state, and how little you must drive to qualify.

Liberty Mutual

Liberty Mutual is likely to consider your mileage when they choose your rates. But they don’t have any discounts for low mileage drivers. Instead, they offer a pay-per-mile insurance program called RightTrack. Using a telematics device, this program tracks your car’s miles every month and will calculate your rates. You may need to reach out to Liberty Mutual to find out more about how to enroll.

Farmers

Farmers’ Signal app can help you get a discount for being a low mileage driver. Like other carriers’ programs, the program enables Farmers Insurance to track your driving and potentially give you discounts. It watches things such as when you drive, how much you drive, how fast you drive, and more. Call your Farmers agent for more detailed info about how much you can save with Signal.

Travelers

Travelers doesn’t have a low mileage discount. They may, however, use your yearly mileage as a factor when deciding how much you’ll pay for car insurance.

American Family

You can qualify for a low mileage discount from AmFam if you drive less than 7,500 miles per year. You could also get additional discounts through their usage-based KnowYourDrive program that uses an app to track your driving habits.

This is only a partial list of insurance companies with low mileage savings options. Get a quote to compare car insurance companies with discounts or programs that offer low rates to occasional drivers.

Farm Bureau Financial Services

Farm Bureau offers a low mileage discount when you drive less than 7,500 miles a year. They’re website doesn’t specify the discounts savings. So, you’ll need to contact them directly or ask an agent to learn more.

Frequently Asked Questions

Q: What is a low mileage driver?

A: A low mileage driver is someone who drives around 7,000 to 10,000 miles per year. Remember that every insurance company will have a unique definition of a low mileage driver, meaning that the number could even be higher than 10,000 miles per year. Low mileage drivers are usually people who don’t need to drive that often. Common examples include:

  • People who work from home
  • People who carpool or use public transit
  • Retired people
  • College students

Q: Is it possible to get car insurance for infrequent driving?

A: Yes, you can get car insurance policies for infrequent driving. Many major auto insurance companies offer pay-per-mile or UBI plans aimed at low mileage drivers. You could pay a lot less with these than with traditional insurance policies. There are also companies like Metromile that offer similar pay-per-mile plans.

Q: Can my insurance go up if I drive too many miles per year?

A: Your car’s yearly mileage is a factor that could affect your auto rates. If companies give you discounts for driving less, there’s a chance they could raise your rates if they think you drive too much. This is because, in their eyes, you’re at a higher risk of being in an accident if you drive more often.

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