Low-Mileage Car Insurance Discount: How Much You Can Save in 2023

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

UPDATED: Jul 28, 2021

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Key Takeaways

  • Low mileage car insurance discounts are often available for those who drive under 7,500 miles per year
  • Usage-based car insurance can be cheaper for those who don’t drive as much
  • Low mileage car insurance quotes can come back up to 30% cheaper than those who drive a lot

Low mileage car insurance discounts are becoming increasingly popular as we continue to embrace the changing times. Cheap car insurance is easier to get if you’re a low mileage driver.

Looking to save money with car insurance discounts? We’ll explain how to get a low mileage discount, which companies offer low mileage discounts, and if you qualify for a low mileage car insurance discount.

Excited to see more about how to save money with a low mileage discount? Start comparing individualized rates from top companies with our free quote tool above.

Is car insurance cheaper if you drive less?

There are many ways to save money on car insurance. For those that drive infrequently or that have a very short everyday commute, you shouldn’t be paying as much as someone who drives for hours each day.

Car insurance rates are based on risk. Simply put, the less you drive, the less risk you create for your insurer. What’s the trick to getting the best car insurance for low mileage drivers? There are a couple of options.

Your primary objectives should be to find usage-based discounts or low mileage car insurance discounts. What are usage-based discounts? Usage-based discounts are available from many insurers to people who don’t drive as far or as often as the average person.

This could be for a multitude of reasons. For example, someone who just retired might not have to commute to work anymore, so the miles they drive each month have decreased drastically.

In more recent times, COVID-19 has forced many people to work from home. The same concept applies. No commute to work means fewer miles and inherently less risk for a car accident. Does your insurer know you work from home?

What is car insurance for low mileage drivers? You’ll have the same car insurance coverage benefits as a low mileage driver, but you won’t be allowed to drive as far if you want to retain a cheaper rate. This means providing proof of your mileage every six months or so.

Am I a low mileage driver?

Times are changing. With so many people working remotely or only half-time at work, there are likely many who don’t realize they’re low mileage drivers. How many miles per year is considered low mileage?

For most companies, 7,500 miles per year or less is considered low mileage. This breaks down to about 625 miles per month or just over 155 miles per week.

Before you learn how to find insurance as a low mileage driver, you’ll need to be sure that you are one. Each company might have slightly different car insurance mileage brackets.

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For example, some companies might consider low mileage to be under 5,000 miles per year while high mileage is greater than 20,000 miles per year.

A new company might mean a new rule. Driving less than 50 miles a day is a good start to staying under 20,000 miles.

What are the best insurance options for low mileage drivers?

Assuming you qualify, now you’re ready to find the cheapest low mileage car insurance. Is car insurance cheaper the fewer miles you drive? Yes, but only if you let your insurance agent know.

Low mileage and usage-based discounts on auto insurance are available from most of your top insurers. Many of the top insurers are also the cheapest car insurance companies, even without discounts.

Keep in mind, prices vary by state. Companies like USAA and Geico consistently appear as cheap car insurance companies. Does Geico offer a low mileage discount? For those who drive under 7,500 miles per year, Geico will discount up to 9% of their total car insurance bill.

What are the companies that offer low mileage and usage-based discounts? Many of the top car insurance companies offer low mileage discounts. This includes:

  • State Farm
  • Progressive
  • Nationwide
  • Allstate
  • USAA
  • Esurance
  • Safeco

These are just some of the companies that offer low mileage and usage-based discounts on auto insurance. Who should consider a low mileage discount?

Anyone who consistently drives very little should consider searching for a low mileage discount. When underwriting your car insurance plan, insurers base your rates on how much you drive, amongst other factors.

Want the best rates? You can get affordable low mileage car insurance rates by taking advantage of insurer discounts.

Low Mileage Discounts: The Bottom Line

Whether COVID-19 changed your driving habits, you retired, or you just don’t drive that much, you might be eligible for a low mileage car insurance discount. You can save up to 30% on your car insurance with a low mileage discount.

Ready to get the buy low mileage car insurance? You always want to shop around first. Start getting instant rates from top car insurance companies using our free quote tool below.


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Enter your zip code below to view companies that have cheap auto insurance rates.

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