Best Low-Mileage Auto Insurance Discounts in 2024 (Save up to 25% With These Companies)

The best low-mileage auto insurance discounts for drivers in the 5,000 to 10,000-mile range come from Amica, State Farm, and Erie, offering up to 25% savings.

Amica excels with personalized discounts, State Farm auto insurance provides reliable savings, and Erie combines competitive rates with excellent service.

Our Top 10 Company Picks: Best Low-Mileage Auto Insurance Discounts

These providers deliver the best low-mileage auto insurance options by determining mileage, coverage needs, and customer satisfaction.

Protect your vehicle from whatever the road throws at it by entering your ZIP code into our free comparison tool to see affordable car insurance quotes, including options for low-mileage auto insurance discounts.

How Commute Length Impacts Low-Mileage Auto Insurance Discounts

Many drivers don’t log a lot of miles on the road, whether due to short commutes, using public transportation, or biking. New rules for cars driving less than 50 miles a day in states like Colorado and Texas now make it easier for drivers to qualify for low-mileage car insurance discounts.

Insurers like Amica, State Farm, and Erie offer savings for low-mileage drivers, with discounts reaching up to 25%. If you’re driving less frequently, you could qualify for cheap, low-mileage car insurance. Additionally, low-mileage car insurance for seniors can offer even greater savings, especially from the best auto insurance companies for seniors.

People in many situations can take advantage of the low mileage car insurance discount. The table below shows average rates for these major insurers based on commute length. As you can see, a longer commute translates to higher rates.

Monthly Auto Insurance Cost by Daily Commute

Insurance rates for low-mileage drivers are generally lower, so a longer commute may contribute to higher auto insurance costs.

Let’s say you recently moved closer to work. Maybe you gave up your big house in the suburbs for a smaller apartment in the city to lower your commute time. You used to drive your car 50 miles per day in traffic.

Now, you walk to work and only use your car on the weekends. In such cases, it’s best to call your insurance agent and ask for a low-mileage discount. If you’re driving less than 50 miles a day, make sure to ask about insurance for low-mileage cars or the best low-mileage car insurance options for your specific situation.

Read more: Average Miles Driven Per Year by State

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Groups Most Likely to Qualify for Low-Mileage Auto Insurance Discounts

Several groups of people may qualify for significant savings on auto insurance due to their reduced annual mileage. If you belong to one of these groups, it’s a good idea to inquire about low-mileage discounts, which can lower your premiums:

• Senior Citizens: If you’re retired or just working fewer hours, your commute and annual mileage will likely decrease, leading to potential savings. Many affordable auto insurance companies for seniors offer discounts for reduced driving.
• Carpoolers: If you recently joined a carpool to get to and from work, school, or anywhere you go daily, you’ll naturally drive fewer miles.
• People Who Moved: Moving to a more convenient location, such as a neighborhood with subway and bus stops, may reduce the time you spend driving.
• Students: If you are or have a teenage driver who only drives the car to school and back, make sure you let your car insurance provider know this. Teens often have the highest auto insurance rates because they’re high-risk, so finding any way to save is important.
• Secondary Car Owners: If you buy another car to drive only on weekends, for example, your driving time for your primary car will likely decrease. You should immediately inform your insurance company if you purchase a second vehicle.

Is 15,000 miles a year a lot? A recent study by Quadrant Information Systems found that people who drive 5,000 miles annually pay 8% less on their yearly auto insurance rates than people who drive 15,000 miles annually.

The average miles driven per year by state can vary, but the U.S. Department of Transportation estimates that the average American driver covers around 13,500 miles annually. While you may think you drive less, many drivers surpass this average, which can impact factors like insurance rates and vehicle upkeep.

If you spend significant time behind the wheel, your annual mileage increases. That’s why learning about the different insurance coverage options is so important.

How to Secure a Low-Mileage Auto Insurance Discount

If you’ve been driving less recently or have always driven fewer than 5,000 miles per year, it’s crucial that you contact your insurance company and ask about low-mileage car insurance rates or any low-mileage discount options. Many insurance companies offer car insurance for low-mileage drivers, including low-mileage discounts for those who qualify.

A recent survey by Princeton Survey Research Associates found that only 16% of Americans have asked their insurer for discounts. The same study found that only 18% of drivers ever inform their insurance company if their daily mileage changes, including those who drive less than 50 miles a day or have cars driving less than 50 miles a day.

What should I put for annual mileage for a discount? No matter what, you should be honest. Auto insurance companies have the right to deny a claim and cancel your coverage if you were dishonest when you first got the policy.

In fact, lying can be considered fraud. And you certainly don’t want to have your claim denied after an accident because your annual mileage for auto insurance is incorrect.

Remember, like most companies, insurance policy providers are in business to make a profit. Therefore, many insurance companies will not give you discounts unless you ask for them. For example, Amica’s low mileage discount could apply to low mileage insurance in states like Colorado or Texas, where drivers can benefit from low mileage car insurance rates.

The best policy is to continually check with your insurance company to see which new discounts may be available to you, especially for those driving less than 50 miles a day. Thousands of Americans are leaving hundreds of dollars on the table annually just because they haven’t asked for car insurance and low mileage discounts. Don’t let yourself be one of them.

Low-Mileage Monthly Min. Coverage Insurance Rates After Discount

Low-mileage auto insurance discount rates differ among providers; indeed, Amica offers the lowest rate of $55 per month, while State Farm and Erie offer $65 and $67, respectively. Allstate was the highest at $90 per month, making it really easy to compare minimum auto insurance coverages you can sign up for pricing.

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States with the Biggest Low-Mileage Auto Insurance Discounts

It’s common to earn big discounts on auto insurance by reducing annual mileage. On average, those driving 5,000 miles a year instead of 15,000 save about 8%. However, savings are based on the state where you reside, and some states offer substantially more than others for the same low-mileage drivers. Here are the states offering the biggest cuts in premiums for low-mileage driving.

These five states have the greatest low-mileage discounts:

1. California: 16.5%
2. Washington, D.C.: 11.1%
3. Alaska: 11%
4. Alabama: 9.8%
5. Hawaii: 9.7%

The following states, however, do not have such a significant discount for cutting back on miles:

1. North Carolina: 0%
2. Utah: 1.2%
3. Texas: 2.5%
4. Connecticut: 2.8%
5. Rhode Island: 3%

California companies most likely charge high rates to because of the sheer number of drivers on California roads. The more traffic a city has, the more likely drivers are to bang into each other.

On the opposite end of the spectrum, North Carolina drivers see the least amount of from driving less. This is because North Carolina has much more rural driving than California does. Driving on sparsely populated country roads is much safer than weaving your way in and out of traffic in Los Angeles.

Monthly auto insurance rates for low-mileage drivers are shown based on different driving records, including a clean record, one accident, one DUI, and one ticket. The data highlights how premiums fluctuate depending on the driver’s history and the provider’s pricing structure, showing how each company adjusts rates based on the driver’s record.

Understanding how your driving record impacts your auto insurance rates can help you make informed decisions when shopping for coverage, as your driving history plays a significant role in determining premium costs.

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Save More with Low Mileage Discounts and Pay-Per-Mile Insurance

The mileage limit for a low-mileage auto insurance discount is different for every insurance company. While some companies grant this policy discount if the driver puts less than 7,500 miles per year on their vehicles, other firms set the threshold at 6,000 miles. If you drive less, updating your insurer with your mileage is a good idea to take advantage of any discounts available and negotiate lower auto insurance rates.

In terms of mileage brackets, insurers tend to use categories like 6,000 miles per year-10-mile commute or 12,000 miles per year-25-mile commute—and your rates will generally increase with higher mileage.

Pay-per-mile auto insurance may be a better option for drivers who cover fewer miles. This kind of usage-based insurance is ideal for those who drive less than 50 miles a day and provides a way of saving money by paying per mile only for the miles one drives. However, traditional auto insurance may be more suitable if you commute longer.

Maximizing Savings with the Best Low-Mileage Auto Insurance Discounts

The best low-mileage auto insurance discounts can provide significant savings, especially for drivers with consistently low annual mileage. Providers such as Amica, State Farm, and Erie offer discount rates of up to 25% for low-mileage drivers with excellent driving records or those participating in usage-based programs.

These discounts apply to individuals who drive fewer than 7,500 miles annually, including seniors, telecommuters, and individuals with short commutes. Of course, this is attributed to the reduced risk these drivers pose since they are on the road less.

Telematics-based insurance or pay-per-mile programs enable drivers to pay for what they use and not overpay for coverage if they are lower drivers. Insurers can apply technology to monitor the miles driven and provide more accurate premiums that reflect driving habits.

Commutation length and annual mileage have also helped drivers understand their rates and make better choices when choosing optimal coverage options. These are substantial cost reductions when availed of, besides offering low-mileage drivers affordable and tailored coverage.

To make the most informed decisions, it’s crucial to know how to compare auto insurance quotes to identify the best deals based on these factors.

Looking for low-mileage discount car insurance? Let us help you out with your low-mileage insurance. Enter your ZIP code into our free comparison tool to get instant quotes from the top insurance providers.

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