The Best and Cheapest Low-Mileage Car Insurance (2024)

Drivers looking for cheaper premiums should consider low-mileage plans from Hugo, USAA, and State Farm for maximum savings.

17+ years in insurance and personal finance writing

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Angela is an insurance and personal finance expert who uses her experience to create content that helps readers understand important and complex topics.

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Experienced personal finance writer

Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

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7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

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Updated June 11, 2024

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If you don’t drive much, you may wonder why your car insurance cost is so high. On average, Americans drive about 13,500 miles per year. If you put fewer than 7,500 miles on your car every year, you may qualify for significantly discounted rates or low-mileage policies. 

You may also consider pay-per-mile policies, which have rates based on actual usage, especially if you drive less than 10,000 miles annually.[1] Multiple insurers offer pay-per-mile coverage, so it’s a good idea to compare quotes to help you find the best low-mileage car insurance policy for your needs.

The “low-mileage” designation is specific to drivers who travel less than 7,500 miles yearly.

Telematics programs can collect data from drivers’ vehicles to help personalize premium costs.

Not all mileage-based programs use telematics for premium determinations.

How low-mileage drivers can save on car insurance

Low-mileage drivers have several options for saving money on car insurance. In addition to low-mileage discounts, drivers should consider options like pay-as-you-go and pay-per-mile car insurance. People who drive far less than the average consumer frequently save money with usage-based insurance.

Common factors contributing to low-mileage usage include working from home, living in a walkable city, short commutes, and using public transportation. People who travel less in their car often benefit from discounts because their risk of an accident or a claim is lower. But your savings depend on your insurance company, where you live, your vehicle type, and other factors.

The table below shows the average full-coverage rates for typical low-mileage drivers from some of the most popular insurance companies.

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Liability rates start at $19 per month

Best low-mileage car insurance companies

Choosing the right car insurance company is important for all drivers. If you’re looking for lower rates based on your annual mileage, it’s a good idea to check for companies that specifically offer pay-per-mile insurance, usage-based coverage, or significant discounts for low mileage. You can find policies that provide the same or similar coverage as traditional insurance policies at a much lower rate.

Hugo: Best for drivers on a budget

drivers on a budgetHugo

Hugo allows you to purchase insurance coverage for as little as a few days. It also offers unlimited basic (liability) and unlimited full-coverage plans. Hugo operates similarly to a prepaid debit card. You pre-purchase coverage for days, weeks, or months that you drive. You can reload when needed or withdraw cash if you won’t need as much coverage as you thought. Hugo is a good option for people who need more flexibility for their insurance policy than rates based on the number of miles they drive.

Short-term policies

No down payment required

Flexible, pay-as-you-go insurance

Only available in 13 states

No discounts and limited options to customize coverages

On the Go Insurance

Yes

Average

Mile Auto: Best for privacy

privacyMile Auto

Mile Auto offers pay-per-mile insurance coverage. Unlike some companies, which typically use a black box to track mileage usage, Mile Auto asks that you send a photo of your odometer once per month. You pay a base rate plus a set rate per mile. Mile Auto uses a system that ensures the images you send are legitimate and compares your usage to your previous odometer readings.

Allstate: Best for drivers who don’t want to think about coverage

drivers who don't want to think about coverageAllstate

Allstate’s Milewise program charges drivers based on how far they drive each month. You install a box that sends driving data to the mobile app so the company can track your mileage and charge you accordingly. Allstate charges a base rate plus a cost per mile. With this plan, you don’t have to worry about sending a photo each month; instead, the tracking box uploads the data independently.

Well-established with superior ratings from A.M. Best

Pay-per-mile option available

Low customer satisfaction

Rates are merely average compared to other insurers

Rates have steadily increased without any claims

Comments on Allstate

Disappointed

Telematics programs for low-mileage drivers

Telematics refers to data a device collects and sends back to an insurance company’s server. The devices track mileage and driving habits to help insurers better understand drivers’ behavior and customize their car insurance rates accordingly. Auto insurance companies may collect telematics through a device installed in a vehicle or through a mobile app.

Telematics can be helpful if you drive less often or practice very safe driving habits. The collected data allows you to save (sometimes substantially) on your car insurance rates.

The data can also help you learn to recognize and correct bad driving habits. The biggest drawback of telematics programs is privacy concerns. For example, some consumers may be concerned about telematics’ ability to track location and gather other personal data.[2]

The table below shows how much you could save with some different insurers’ telematics programs.

Other ways to save on car insurance as a low-mileage driver

You can minimize the cost of your auto insurance by taking a few extra steps. Here are four reliable ways to lower the cost of your insurance premium:[3]

Bundle home and auto. Many insurers offer discounts for customers who bundle their homeowners or renters insurance and auto policies. You’ll pay for both policies in one monthly bill.

Improve your credit score. In most states, insurance companies can use your credit history as a factor when determining your insurance rate. You may qualify for lower rates with a higher score. Lower your debt and pay your bills on time to improve your credit score faster.

Look for other discounts. Ask your employer if it has discount programs with any particular company. If you’re a student, you may qualify for discounts as well. Additionally, older drivers may qualify for discounts through the AARP or other organizations.

Look for new rates regularly. While some companies offer loyalty discounts, you may find a better deal by comparing rates from different insurers regularly. You may want to consider checking for lower rates when you purchase a new vehicle, add a new driver, or move to a new city.

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Low-mileage car insurance FAQs

Saving money on auto insurance may be simple if you don’t drive often. Here’s some additional information about low-mileage car insurance policies.

What is considered a low-mileage driver?

Low-mileage drivers typically drive 7,500 miles or less per year. But some insurers offer rates for people who drive less than 10,000 miles annually.

Is higher or lower mileage better for insurance?

Car insurance companies generally prefer low-mileage drivers because they consider them to be lower-risk. The less time drivers spend on the road in high-traffic areas, the less likely they are to be involved in an auto accident.

Is pay-per-mile insurance worth it?

Pay-per-mile insurance can save drivers a lot of money. Retirees, drivers working from home, and people who primarily use public transportation can save on insurance premiums without sacrificing coverage.

What’s the difference between pay-per-mile and usage-based insurance?

Pay-per-mile programs allow drivers to pay a base rate and a per-mile fee. Usage-based insurance uses telematics technology to consider factors like mileage, speed, turning, and other safe driving behaviors to offer discounts for good driving practices.

Methodology

Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.

Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).

Liability-only premium averages correspond to policies with the following coverage limits:

Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.

Sources

Angela Brown is a freelance writer with 17 years of professional writing and editing experience. She specializes in finance, real estate, and insurance content. Angela uses her experience to create easy-to-understand content that helps consumers understand tough topics better. When she’s not working, she enjoys spending time with her family and planning vacations.

Experienced personal finance writer

Background working with banks and insurance companies

Sarah enjoys helping people find smarter ways to spend their money. She covers auto financing, banking, credit cards, credit health, insurance, and personal loans.

Read Editorial Guidelines

Featured in

7+ years experience in data analysis

Ph.D. in Computational Biology

Konstantin has led data teams across multiple industries, including insurance, travel, and biology. He’s led Insurify’s engineering team for more than three years.

Read Editorial Guidelines

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