The number of miles you drive has an impact on how much you pay for your auto insurance policy. Until recently, low-mileage drivers had few opportunities to receive cheaper car insurance. With the advent of new technology — and broader changes to the driving habits of many Americans — more car insurance companies are offering opportunities for low-mileage drivers to save money. But these opportunities can vary based on your insurance company (and even your location).
In our guide to car insurance as a low-mileage driver, we’ll review some of the best ways to save on car insurance, including simple low mileage discounts, telematics and usage-based insurance.
If you’re a low-mileage driver, look for specific programs catering to you. As we’ve demonstrated, the only real discount you will receive for low mileage 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 UBI companies like Root and Metromile are good places to start. See how much you could save as a low-mileage driver by entering your ZIP code below.
Using the profile outlined here, we surveyed eight insurance companies to see which one offered the cheapest premiums for low-mileage drivers.
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.