What is a low mileage car insurance policy?

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In a nutshell...
  • You must verify your mileage at the beginning and end of the coverage period, just as you would with a discount
  • If the driver exceeds this low mileage limit, the policy may be canceled or converted to a regular mileage policy
  • Be aware that mileage is not the only factor affecting your car insurance rates

We’re often asked, “Is car insurance on a car I rarely drive expensive?” Well, it depends on the company. Some of the best car insurance companies offer low mileage car insurance, which saves you up to 30 percent on car insurance.

What’s considered low mileage for auto insurance? Continue reading to learn how you can be eligible for a low mileage car insurance policy. If you want to see if you’re eligible for low mileage car insurance right now, enter your ZIP code in the FREE comparison tool above.

What is a low mileage car insurance discount?

You may have asked, “Can I get a discount for driving less?” Low mileage car insurance is a form of insurance for people who don’t drive their vehicles often. Car insurance companies offer a low mileage car insurance policy to drivers who agree to stay within certain limits to the number of miles a vehicle is used per year.

Low mileage car insurance is useful for drivers who only use their vehicles occasionally, and for people who rarely drive more than a few miles from home. How much will a low mileage discount save me?

That depends on the company, but we can show you an example of how a low mileage car insurance discount could affect your insurance rate. Does Allstate or State Farm have a low mileage discount? Let’s compare car insurance rates from the top-10 car insurance companies and see how a 30 percent low mileage discount could affect their costs.

Low Mileage Car Insurance Discounts Available by Company
CompaniesAverage Annual RatesLow Mileage Discount PercentagesAnnual Rates with Discount(s) Applied
USAA$2,542unspecified$2,542
Geico$3,2161.30%$3,174
State Farm$3,26830%$2,288
American Family$3,443unspecified$3,443
Nationwide$3,447unspecified$3,447
Progressive$4,044N/A$4,044
Farmers$4,189N/A$4,189
Travelers$4,44510%$4,001
Allstate$4,898N/A$4,898
Liberty Mutual$6,096unspecified$6,096
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See how low mileage car insurance discounts can decrease annual rates. State Farm’s low mileage car insurance discount is reported as 30 percent.

Companies listed as “unspecified” have a low mileage discount, but they don’t report the percentage. Therefore, low mileage car insurance discounts for Geico will only be revealed when you get coverage with the company.

What is the low mileage car insurance limit? Mileage limits depend on your car insurance company. If you have usage-based car insurance (pay-per-mile car insurance), your car insurance can monitor your driving and see if you exceeded the car insurance mileage limits.

Pros and Cons of Low Mileage Insurance

The great thing about low mileage car insurance is that you can save money and drive your car less. Low mileage car insurance options like pay-as-you-drive (PAYD) and pay-how-you drive (PHYD) are perfect for classic car insurance. If you drive your classic car every weekend, get PAYD or PHYD insurance to drive with no mileage limits. Classic car insurance is better without mileage limitations.

“SuperCar” insurance and exotic and car insurance with low mileage limits will reduce the chances of an accident. With no mileage limits attached, you don’t have to be cautious about going over a mileage limit. If you want to keep your low mileage.

The low mileage car insurance is often monitored by something called Telemetrics. Your car insurance company can monitor everything about your vehicle using these devices. When Telemetrics is paired with your smartphone, it records all driving information.

If you exceed your mileage limit you agreed on from insurance, you could be paying much more than you anticipated. It may be a good idea to get second car insurance to stay within the limited mileage requirements.

What is parked car insurance?

Do you have to insure your car if you are not driving it? It’s in your best interest to get every vehicle you own insured. Classic, exotic, or supercars that are collectibles or rarely driven should carry insurance.

Comprehensive coverage alone isn’t enough. Car insurance for cars that are not driven still need liability insurance coverage because it’s required by law. To cover your classic car entirely, get classic car insurance.

So the question: “Do I need car insurance if I don’t drive my car?” The answer is yes. You don’t want to make a mistake and drive an insured car. It could you thousands of dollars.

Why is mileage important?

Mileage is one variable car insurance companies use to calculate the risk of insuring you. When you purchase car insurance online, you will often be asked how many miles you typically drive your car in a week.

More time on the road makes a driver more likely to encounter an accident. According to the Insurance Information Institute, 36,120 people died in car crashes in 2019. It’s a decrease from 2018, but you increase your chances of an accident if you drive more than average.

The insurance company can calculate an average number of miles driven per year. If you drive a lot, your car insurance rates may be higher because you’re at a higher risk for an accident due to your frequent exposure on the road. If you drive less, your car insurance should be cheaper.

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What are the types of low mileage car insurance?

Low mileage car insurance is implemented in several ways. First, some car insurance companies offer a discount on your regular premium if you drive fewer miles during the year. This discount is only a small portion of your total bill, however, it may or may not save you money over the life of your car insurance policy.

Another type of low mileage insurance is the basic low-mileage policy. This policy assumes from the beginning of your coverage that you will not exceed a certain amount of mileage during the coverage period.  You could face a penalty and pay more on car insurance.

What happens if I go over my mileage amount? If your low-mileage car insurance exceeded the allowed limit, you will have to negotiate with your car insurance company to determine your rate. It’s possible that the company will add a surcharge for the extra mileage. In other cases, you will have to convert your policy to a regular coverage option.

Pay-Per-Mile Car Insurance

A driver who doesn’t drive much can use a pay-per-mile insurance option called pay-as-you-drive (PAYD) insurance and pay-how-you-drive insurance (PHYD). Both insurance options issue car insurance rates on how much you drive and your driving habits.

Watch this video of Metromile’s pay-per-mile insurance option and get a general idea of how it works.

Factors that determine car insurance will determine your mileage bracket. In other words, your rate per mile would depend on age, gender, driving record, credit history, and vehicle. However, your gender can’t be a factor for insurance in state laws like California, which has outlawed using gender to determine car insurance.

Full coverage insurance may not be available for pay-per-mile insurance, so ask the car insurance company what pay-per-mile insurance covers.

Enter your ZIP code in the FREE comparison tool to see if pay-per-mile insurance is available in your local area.

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How much car insurance do you need if you rarely use a car?

Most states require some form of liability insurance coverage if you drive your car even a few miles each year.

However, if your car is in storage, you may qualify for a “no-mileage” based policy that covers your vehicle in case someone was to be injured on or around it while it is stationary.

Classic car insurance is a good example of a “no-mileage” car insurance.

These “no-mileage” policies are typically deficient in cost, as there are almost no claims filed on them except in the event of a fire or other disaster which destroys the vehicle. Liability claims are very rare in “no-mileage” cars.

Be aware that mileage is not the only factor affecting your car insurance rates. Your age, gender, location, and the make and model of your vehicle also have an impact on your premiums. According to the Federal Highway Administration (FHWA), the average vehicle owner drives 13,476 miles per year.

If you have a poor driving record with claims against you for accidents or an excessive number of driving violations, you will pay more for insurance, regardless of your mileage.

Start comparing car insurance from top low mileage car insurance companies in your local area by entering your ZIP code in the FREE comparison tool.

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Do all companies offer low mileage insurance?

No. Some of the top car insurance companies have low mileage options like pay-per-mile insurance, but they may not have a low mileage discount. Safe driver discounts often take the place of low mileage discounts, so you can save money.

If you’re ready to look at low mileage car insurance right now, enter your ZIP code in the FREE comparison tool below.

Frequently Asked Questions: Low Mileage Car Insurance Discount Limits

The final section of the article will recap what you’ve learned and answer frequently asked questions that appear on search engines across the internet. Do you want to know more about car insurance? Visit our main page and explore other articles, guides, and reviews on car insurance.

#1 – Does Geico give a low mileage discount?

Yes. The percent off isn’t advertised, but you can save money if you drive your car less.

#2 – How many miles can I drive and still get a discount?

Any annual mileage under 6,000 miles is considered low mileage. Some car insurance companies will list 3,000 to 4,000 annual miles.

#3 – Who has the cheapest car insurance for seniors?

USAA and State Farm are the cheapest car insurance companies for seniors. However, USAA car insurance is only available for active and retired U.S. Armed Forces members and their immediate families.

#4 – What is the low mileage limit for insurance?

Usually, the limit is 7,500 miles per year. Some companies list their limit at 6,000 miles per year.

#5 – Who has the best pay-per-mile car insurance?

The best pay-per-mile car insurance is down to five companies: Root, Metromile, Allstate, Nationwide, and Esurance.

#6 – How much will a low mileage discount save me?

It depends on the company. The most you’ll save is 20 percent. State Farm offers up to 30 percent.

#7 – What happens if I go over my mileage amount?

Your car insurance company will issue higher policy rates because you’ve increased your risk.

#8 – Do some car insurance companies limit your mileage under liability-only insurance?

Under a standard car insurance policy, there’s no mileage limit for liability insurance.

#9 – Is there a mileage limit on classic car insurance?

Not really. Classic cars aren’t driven as much, so car insurance companies don’t usually issue a mileage limit under classic car insurance.

#10 – Can you insure multiple cars?

Yes. Car insurance companies issue discounts to customers that insure multiple vehicles on the same policy. A multi-vehicle discount can offset the extra cost if you exceeded the car insurance mileage limit. Pick up a second car insurance with limited mileage, and a car insurance plan with unlimited mileage if one of your cars is a weekend car.

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