The following are the lowest average annual rates for low mileage drivers ought to find:
According to a study on auto insurance, USAA provides low mileage drivers—that is, those who travel 6,000 miles or less annually with the lowest average annual premiums. The national average cost is $1,973, whereas USAA’s sample rate is $1,247.5.
Since USAA automobile insurance is only offered to members of the armed forces, most drivers with limited mileage should look into options from other insurers. At $1,293 annually, Erie had the second-lowest sample rate among low mileage drivers in our analysis. At $1,607, Nationwide had the third-lowest.
Among the six insurers in the report that provide prices lower than the national average for drivers with minimal miles are USAA, Erie, and Nationwide.
Cheapest and Affordable Low Mileage Auto Insurance
Low mileage drivers spend an average of $1,973 for auto insurance annually, according to the information gathered.
The following are the lowest average annual rates for low mileage drivers ought to find:
USAA: $1,247
Erie: $1,293
Nationwide: $1,607
Geico: $1,682
Auto-Owners: $1,610
Progressive: $1,792
State Farm: $1,954
American Family: $2,096; Farmers: $3,212
Allstate: $3,236.
It’s important to keep in mind that low mileage rates vary and often depend on state insurance regulations.
For example, low mileage drivers in California may save more than their counterparts in other states because California law requires auto insurance companies to take estimated annual mileage costs into account when setting premiums.
The best way to find affordable, low mileage car insurance is to obtain free quotes from car insurance providers licensed to sell coverage in your state.
Am I a Low Mileage Driver?
Based on data from the US Federal Highway Administration for 2022, an average drivers travels about 13,500 miles annually, or about 1,125 miles each month.
Should your driving record be below average, you can be classified as a low mileage driver.
Special discounts and the meaning of “low mileage” differ throughout insurers. Get in touch with your insurer or many insurers, if you’re shopping around to find out whether you believe you might be eligible for a low mileage discount or incentive program.
Remember that some insurance companies restrict coverage to drivers who have reached a particular mileage threshold or who have been policyholders for a specific number of years.
Is Car Insurance Cheaper If You Drive Less?
Your mileage is one of many factors that affect the cost of your car insurance. Generally speaking, rates are higher for drivers who drive more.
Reductions in insurance may be available to you if you drive less. Your driving history, geography, insurance company, and any available low mileage discounts, plans, or programs will all affect how much you save.
Based on an analysis of rates, drivers who travel 6,000 miles a year spend, on average, $1,973 for auto insurance.
That is over $100 less than the $2,068 annual national average premium for drivers who travel 12,000 miles.
The following could help you cut your auto insurance premium even more:
- Discounts for low mileage
- Programs for usage-based insurance (UBI)
- Policies that charge for each mile
Low Mileage Car Insurance Discounts
The majority of auto insurance providers provide eligibility-based discounts on auto policies, and some even provide special rates to drivers with minimal mileage.
It’s worth calling your insurer to find out whether they provide savings to policyholders who drive less miles annually if you’re not putting a lot of miles on the clock.
Drivers can lower their premiums by taking advantage of low mileage reductions offered by a few of the insurers in our survey, including as American Family and USAA.
To learn more about potential low mileage discounts and other savings options, get in touch with your auto insurance company.
What Is Usage-Based Insurance?
Usage-based auto insurance (UBI) plans track your driving behaviors using a telematics gadget or app on your phone.
Although each program is unique, the majority of auto insurance tracking programs determine your rate based on driving distance, using your phone while driving, how you brake, how fast you go, and other factors that can raise or lower your chance of an accident.
Black box auto insurance refers to auto insurance that tracks your driving patterns via an app or other electronic monitoring system.
What Usage-Based Insurance Options Do Low Mileage Drivers Have?
Many insurance providers, including some in our rating of Cheap Car Insurance Companies, offer usage-based car insurance options:
COMPANY AND PROGRAM NAME
USAA:SafePilot
Farmers:Signal
Nationwide:SmartRide
Erie:YourTurn
American Family:KnowYourDrive
State Farm:Drive Safe & Save
Geico:DriveEasy
Allstate:Drivewise
Progressive:Snapshot
The information provided on this website is sourced from the insurer’s website and is subject to change.
Remember that not all UBI programs, even those that track your mileage, provide a discount for low mileage.
Therefore, before enrolling in a program, find out whether mileage is tracked and whether or not it’s factored into your rate.
Additionally, while participating in a UBI program may result in lower rates, a discount isn’t guaranteed.
Always check with your insurer to find out if your rates may increase based on data from telemetric devices.
Lastly, policyholders should be aware that not all of these programs are offered in every state.
What Is Pay-Per-Mile Insurance?
Auto insurance that is based on how many miles you drive is known as pay-per-mile insurance.
Pay-per-mile programs usually have a base rate in addition to that. The total cost varies according to your driving history, age, and the kind of vehicle you choose.
Pay-per-mile policies typically offer full coverage, which entails the following minimum provisions:
- Liability coverage for property damage and bodily injuries
- All-encompassing protection
- Coverage for collisions
- You will also have personal injury protection (PIP) coverage if you reside in a no-fault state.
Furthermore, a lot of pay-per-mile auto insurance policies have a daily mileage cap.
You can continue to take road trips without worrying about having to pay a higher premium because anything beyond that is free.
What Pay-Per-Mile Insurance Options Do Low Mileage Drivers Have?
Fewer insurers provide an effective pay-per-mile insurance alternative, despite the fact that many have expanded their coverage portfolio to include usage-based options.
Furthermore, keep in mind that pay-per-mile policies are state-specific, so finding coverage might not always be simple.
Such programs are provided by two of the insurers in this list of Cheap Car Insurance Companies: Nationwide and Allstate.
Drivers who participate in Allstate’s Milewise program pay a daily fee in addition to a per-mile fee.
Allstate’s pay-per-mile policy and Nationwide’s SmartMiles program are comparable.
Drivers pay a cost-per-mile rate in addition to their regular premium each month.
Some insurance companies only provide pay-per-mile coverage. Low mileage drivers can reduce their auto insurance costs with the mileage-based insurance coverage provided by Metromile and Mile Auto, which combines a base premium with a per-mile rate.