etromile, Nationwide, and Allstate have the best low-mileage auto insurance discounts, with savings up to 30%. Most auto insurance companies require drivers to travel fewer than a set number
Best Low-Mileage Auto Insurance Discounts
Metromile, Nationwide, and Allstate are among the companies that stand out for low-mileage auto insurance discounts, giving drivers who spend less time on the road an opportunity to reduce their insurance costs.
Low-mileage drivers generally have fewer opportunities to be involved in accidents because they spend less time behind the wheel. For this reason, some insurance companies offer discounts or mileage-based insurance programs to customers who drive significantly fewer miles than average.
The amount you can save depends on the insurer, your annual mileage, driving history, location, vehicle, and other factors used to calculate your premium.
Top 10 Companies for Low-Mileage Auto Insurance Discounts
| Company | Rank | A.M. Best | Savings Potential | Typical Eligibility |
|---|---|---|---|---|
| Metromile | #1 | A- | 30% | Drivers who travel fewer than 10,000 miles annually |
| Nationwide | #2 | A+ | 25% | Policyholders with annual mileage below 7,500 miles |
| Allstate | #3 | A+ | 20% | Customers driving fewer than 7,500 miles per year |
| State Farm | #4 | B | 20% | Drivers with qualifying low annual mileage |
| Liberty Mutual | #5 | A | 18% | Policyholders driving fewer than 8,000 miles annually |
| Travelers | #6 | A++ | 15% | Drivers traveling fewer than 10,000 miles annually |
| Progressive | #7 | A+ | 12% | Customers driving fewer than 10,000 miles per year |
| USAA | #8 | A++ | 10% | Eligible military members and families with low mileage |
| Farmers | #9 | A | 10% | Drivers with annual mileage below 12,000 miles |
| Safeco | #10 | A | 8% | Drivers meeting qualifying low-mileage requirements |
Discount amounts and mileage thresholds can vary by state, policy, and insurance program.
How to Qualify for a Low-Mileage Auto Insurance Discount
Not every insurer offers a traditional low-mileage discount. Companies that do offer one generally require policyholders to stay below a specific annual mileage threshold.
For many insurers, low mileage means driving fewer than approximately 7,500 miles per year. However, there is no single mileage limit used by every company.
Some insurers may consider drivers who travel 10,000 miles or less to be low mileage, while others may set the threshold considerably lower.
What Counts as Low Mileage for Car Insurance?
The definition of low mileage depends on the insurance company.
For example, a mileage-based insurer may allow drivers who travel fewer than 10,000 miles annually to qualify for savings, while another company may require annual mileage below 7,500 miles.
Your insurer may also consider how your vehicle is used. Someone who works from home and only drives for errands may have substantially lower annual mileage than someone who commutes long distances every day.
Before purchasing a policy, ask the insurer:
→ What annual mileage qualifies for a discount?
→ Does the discount apply automatically or require enrollment?
→ How does the company verify mileage?
→ Do I need to report my odometer reading?
→ Can the discount be combined with other savings?
How Insurance Companies Verify Low Mileage
Insurance companies may use several methods to determine how much you drive.
Common forms of verification include:
→ Telematics or mileage-tracking devices
→ Smartphone-based insurance programs
→ Odometer photographs
→ Vehicle inspection records
→ Mileage information provided by the policyholder
→ Third-party mileage verification
Some usage-based insurance programs can automatically collect mileage information. Other insurers may ask customers to submit an odometer reading periodically.
The documentation required depends on the company’s specific program.
Mileage Tracking and Telematics Programs
Some insurers use telematics technology to monitor driving behavior and mileage.
A telematics device or mobile app may collect information such as:
→ Miles driven
→ Driving frequency
→ Speed
→ Braking behavior
→ Acceleration
→ Time of day
The insurer can then use this information to determine whether the driver qualifies for certain savings.
Low mileage and usage-based insurance are related, but they are not always the same thing. A traditional low-mileage discount may focus primarily on how far you drive, while a usage-based program may evaluate both mileage and driving behavior.
Free Insurance Comparison
Comparing quotes from several insurers can help you determine whether a low-mileage discount actually produces a lower final premium.
Best Auto Insurance Companies for Low-Mileage Discounts
Low-mileage discounts can reduce your insurance premium, but the amount of savings varies considerably between companies.
A provider offering a 30% discount is not necessarily cheaper than one offering only 10%. The reason is that insurers start with different base rates.
The following sample rates show how premiums can change after a low-mileage discount.
Best Low-Mileage Savings: Monthly Auto Insurance Rates
| Insurance Company | Savings | Before Discount | After Discount |
|---|---|---|---|
| Allstate | 20% | $87 | $70 |
| Farmers | 10% | $76 | $68 |
| Liberty Mutual | 18% | $96 | $79 |
| Metromile | 30% | $62 | $43 |
| Nationwide | 25% | $63 | $47 |
| Progressive | 12% | $56 | $49 |
| Safeco | 8% | $38 | $35 |
| State Farm | 20% | $47 | $38 |
| Travelers | 15% | $53 | $45 |
| USAA | 10% | $32 | $29 |
These figures are sample rates and should not be treated as guaranteed quotes. Your actual premium will depend on your personal circumstances and policy details.
Why the Biggest Discount May Not Be the Cheapest
When comparing low-mileage insurance, don’t focus only on the advertised percentage.
For example, an insurer might offer a 30% discount but start with a significantly higher premium. Another insurer might offer only a 10% discount but have a much lower base rate.
Consider this simple example:
→ Company A charges $150 per month and provides a 30% discount, leaving a premium of $105.
→ Company B charges $110 per month and provides a 10% discount, leaving a premium of $99.
Although Company A offers the larger discount, Company B is cheaper after the discount.
This is why comparing final quotes is more useful than comparing discount percentages alone.
Auto Insurance Rates by Driving Record
Your driving history can have a major impact on what you pay for insurance. A low-mileage discount may reduce your premium, but accidents, tickets, or DUI violations can still result in significantly higher rates.
| Insurance Company | Clean Record | One Accident | One DUI | One Ticket |
|---|---|---|---|---|
| Allstate | $87 | $124 | $152 | $103 |
| Farmers | $76 | $109 | $105 | $95 |
| Liberty Mutual | $96 | $129 | $178 | $116 |
| Metromile | $62 | $91 | $96 | $76 |
| Nationwide | $63 | $88 | $129 | $75 |
| Progressive | $56 | $98 | $75 | $74 |
| Safeco | $38 | $59 | $67 | $48 |
| State Farm | $47 | $57 | $65 | $53 |
| Travelers | $53 | $76 | $112 | $72 |
| USAA | $32 | $42 | $58 | $36 |
These sample rates demonstrate why the final cost of coverage depends on more than mileage.
Other Ways to Save on Low-Mileage Auto Insurance
A low-mileage discount is only one way to reduce your car insurance costs. Drivers who use their vehicles infrequently should check for every discount they may qualify for.
Bundle Your Insurance Policies
Many insurers offer discounts when you purchase multiple types of coverage from the same company.
Potential combinations include:
→ Auto and homeowners insurance
→ Auto and renters insurance
→ Multiple vehicles on one policy
Bundling can sometimes produce meaningful savings, although you should still compare the total cost against separate policies.
Maintain a Clean Driving Record
A clean driving history can help keep your insurance premiums lower. Avoiding speeding tickets, accidents, and other violations can be especially important because young or high-risk drivers may already face higher rates.
Consider a Higher Deductible
If you can comfortably afford a higher deductible, increasing it may reduce your premium.
However, don’t choose a deductible that would create financial difficulty if you needed to file a claim. The goal should be to balance monthly savings with an amount you could reasonably pay out of pocket.
Ask About Other Discounts
Insurance companies offer many different discounts, and eligibility varies.
You may be able to qualify for:
→ Good student discounts
→ Safe driver discounts
→ Defensive driving discounts
→ Multi-policy discounts
→ Multi-vehicle discounts
→ Anti-theft discounts
→ Vehicle safety discounts
→ Electronic billing discounts
Using multiple qualifying discounts can reduce your overall premium beyond what a low-mileage discount provides by itself.
Consider Usage-Based Insurance
Drivers who don’t drive often may benefit from a usage-based insurance program.
These programs typically use a mobile app or telematics device to measure mileage and, depending on the insurer, driving behavior.
Usage-based insurance may be especially useful for people who:
→ Work from home
→ Rarely commute
→ Use public transportation frequently
→ Drive primarily for occasional errands
→ Have a second vehicle that is rarely used
However, compare the program’s requirements and privacy considerations before enrolling.
Low-Mileage Insurance for Remote Workers
People who work from home may be particularly well suited for low-mileage insurance.
Without a daily commute, annual mileage can drop substantially. Instead of driving to work five days a week, remote workers may only use their vehicles for shopping, appointments, family activities, and occasional trips.
If your driving habits have changed significantly because you now work remotely, notify your insurer and ask whether your lower mileage could affect your premium.
Low-Mileage Insurance for Retirees
Retirees may also drive fewer miles because they no longer commute to work every day.
If your annual mileage has decreased after retirement, ask your insurer whether you qualify for a low-mileage or limited-use discount.
Some companies may have separate programs for older drivers in addition to mileage-based savings.
Low-Mileage Insurance for Multiple-Car Households
Households with more than one vehicle may have a car that is driven much less frequently than the primary vehicle.
For example, a family may use one car for daily commuting while keeping another vehicle primarily for weekends or occasional trips.
In this situation, ask the insurer whether the lower-use vehicle can qualify for a mileage-based discount or another type of limited-use savings.
Pay-Per-Mile Insurance vs. Low-Mileage Discounts
Pay-per-mile insurance and traditional low-mileage discounts are similar because both can benefit people who drive less. However, they work differently.
A traditional low-mileage discount typically reduces the premium when your annual mileage falls below the insurer’s threshold.
Pay-per-mile insurance generally charges a base amount plus a variable amount based on the miles you drive.
Pay-per-mile coverage may therefore be more attractive to drivers who travel extremely few miles, while a traditional policy with a low-mileage discount may work better for drivers who still drive regularly.
How Much Can You Save With a Low-Mileage Discount?
Savings depend on the insurer and your circumstances. The companies in this comparison advertise potential discounts ranging from approximately 8% to 30%.
Your actual savings can be affected by:
→ Annual mileage
→ Driving record
→ Age
→ Location
→ Vehicle type
→ Coverage limits
→ Deductible
→ Credit-based insurance factors where permitted
→ Other available discounts
Because insurers calculate premiums differently, there is no universal discount amount for every low-mileage driver.
What Mileage Should I Report to My Insurance Company?
Always provide an accurate estimate of your annual mileage.
Underestimating your mileage simply to qualify for a discount can create problems if the insurer later determines that your actual driving significantly exceeds the amount reported.
If your driving habits change during the policy period, contact your insurer and update your estimated annual mileage when appropriate.
Does Low Mileage Automatically Mean Lower Insurance Rates?
Not necessarily.
Driving fewer miles can help reduce your risk of being involved in an accident, but insurers consider many other factors when calculating premiums.
Two drivers with identical annual mileage could still receive very different quotes because of differences in:
→ Driving history
→ Age
→ Location
→ Vehicle
→ Coverage level
→ Claims history
→ Insurance history
This is another reason to compare multiple quotes instead of assuming that a low-mileage discount will automatically make one company the cheapest.
How to Find the Best Low-Mileage Auto Insurance Discount
Finding affordable coverage as a low-mileage driver requires comparing both discounts and overall premiums.
Determine Your Annual Mileage
Start by calculating approximately how many miles you drive each year. Review your odometer, commuting distance, regular errands, and other recurring trips.
Check Each Insurer’s Mileage Threshold
Ask insurers what mileage level qualifies for their program. One company may consider 10,000 miles low, while another may require substantially less.
Ask How Mileage Is Verified
Find out whether the company uses an app, telematics device, odometer photos, or another method to verify your mileage.
Compare Final Quotes
Don’t select a company simply because it advertises the largest discount. Compare the actual premium after all eligible discounts have been applied.
Review the Coverage
Make sure you’re comparing similar policies. A lower price may simply reflect lower coverage limits or higher deductibles.
Reevaluate Your Policy When Your Driving Changes
If you start working from home, retire, move closer to work, stop commuting, or otherwise reduce your driving, contact your insurer and ask whether your lower mileage could qualify you for additional savings.
Final Thoughts on Low-Mileage Auto Insurance Discounts
Low-mileage drivers may have several opportunities to reduce their car insurance costs. Metromile offers one of the largest potential savings in this comparison, while Nationwide and Allstate also provide competitive options.
However, the company offering the largest mileage discount is not automatically the cheapest. Insurance companies use different base rates and underwriting factors, so your final premium can vary significantly between providers.
The best approach is to determine your actual annual mileage, compare insurers with low-mileage programs, ask about mileage verification requirements, and review every other discount you may qualify for.
If you rarely drive, don’t overlook the potential savings. A low-mileage discount, combined with a clean driving record and other eligible discounts, can help you secure more affordable auto insurance without reducing the protection you need.