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.

Angela Brown
Written byAngela Brown
Angela Brown
Angela Brown
  • 17+ years in insurance and personal finance writing

  • In-depth knowledge of home and real estate topics

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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Sarah Archambault
Sarah Archambault
  • 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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Konstantin Halachev
Data reviewed byKonstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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.

Updated October 29, 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.

Quick Facts
  • 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 liability-only rates for typical low-mileage drivers from some of the most popular insurance companies.

The below rates are estimated rates current as of: Sunday, September 1 at 12:00 PM PDT
Data reviewed by Konstantin Halachev
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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.

Insurance Company
Average Monthly Quote
USAA$46
GEICO$55
State Farm$55
Allstate$62
American Family$75
Progressive$79
Travelers$89
Farmers$112
Liberty Mutual$138
Hugo$234
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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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

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User Reviews
4.0
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.0/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$234/mo

Launched in 2021, Hugo is currently the only insurance company offering policy terms as short as three days and the ability to make smaller, more frequent micropayments. Drivers open an account with Hugo without paying a down payment, and choose their policy term. Hugo sells policies for three, seven, 14, or 30 days, or six months, and offers minimum coverage liability insurance. Hugo no longer sells full-coverage policies, and liability policies are limited to state minimums – you can’t buy higher liability limits.

Pros
  • Short-term policies

  • No down payment required

  • Micropayment option

Cons
  • Only available in 13 states

  • Full coverage not available

  • No discounts

Read more driver reviews of Hugo
Dawn - October 21, 2024
Verified

Paying Too Much

It's pretty expensive and they don't really provide much coverage.

Kimberly - September 21, 2024
Verified

Hugo Whoa!

It's steep, but convenient.

Sheila - September 10, 2024
Verified

Great in a Pinch

It's good when you need it on the spot and don't have a lot of money because you pay daily. However, it's very expensive in the long run.

Mile Auto: Best for privacy

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User Reviews
3.8
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
7.5/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$56/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$101/mo

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.

Pros
  • Coverage options comparable to those offered by traditional insurers.

  • No telematics device needed – track monthly miles with a photo of your odometer

Cons
  • Only available in nine states

  • Only 2.7 (out of 5) stars on Trustpilot and many complaints about poor claims experience.

Read more driver reviews of Mile Auto
Cookie - October 15, 2024
Verified

Excellent

Low mileage rate.

Tasha - October 10, 2024
Verified

Not pleased

Don't opt for this insurance if you're on a budget. I was unaware that this was a cost-per-mile insurance. I was never informed about it, and now I'm paying an extra $20 for roadside assistance that I thought was included. I had mentioned to the representative that I couldn't afford expensive insurance, yet the cost has increased.

Thomas - October 8, 2024
Verified

Mixed Review

Mixed. One representative was confusing and couldn't guide me regarding a text I received which stated my payment, which I had been informed had been processed, had actually gone through. To ensure I was covered, I made the payment. The previous representative had been professional and direct. So, I have a mixed reaction.

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

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User Reviews
3.1
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.9/10
Liability Only
Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages.
$62/mo
Full Coverage
Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible.
$137/mo

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.

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

  • Pay-per-mile option available

Cons
  • Low customer satisfaction

  • Rates are merely average compared to other insurers

Read more driver reviews of Allstate
Howard - October 29, 2024
Verified

They Have You By The Short Hairs

I was on a three-lane highway in heavy traffic and couldn't avoid a piece of metal in my lane. I couldn't swerve or I would have hit other cars. Allstate said the accident was the driver's fault and then doubled my insurance cost.

Hugh - October 29, 2024
Verified

Actual Crash Damages vs. Damages Quoted Over the Phone

There were problems getting the correct amount paid out when I made a claim. I had to escalate the issue to the Senior Vice President to get a proper settlement when a deer hit my truck. There was a $5000 difference between what was paid out when the estimator assessed the value of damage to my truck and the actual estimate done by a local car dealership. The Senior Vice President agreed that the amount of damage done was the amount quoted by the local car dealership.

Miriam - October 29, 2024
Verified

Best Overall

Check around before choosing. Allstate has been my choice for years.

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.

Telematics Program
Company
Average Monthly Cost: Full Coverage
Average Annual Savings with Telematics Program
SnapshotProgressive$138$231 per year
DrivewiseAllstate$137Up to 40% off premium
SmartMilesNationwide$185$38 per month
IntelliDriveTravelers$194Up to 30% off premium
KnowYourDriveAmerican Family$167Up to 20% off premium
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers and quote estimates from Quadrant Information Services. Actual quotes may vary based on the policy buyer's unique driver profile.

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:

  • Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
  • Property damage limits between $10,000 and $50,000
  • No additional coverage
Full-coverage premium averages correspond to the same bodily injury and property damage limits in addition to:
  • Comprehensive coverage with a $1,000 deductible
  • Collision coverage with a $1,000 deductible

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

Sources

  1. U.S. Federal Highway Administration. "Average Annual Miles per Driver by Age Group."
  2. National Association of Insurance Commissioners. "Telematics/Usage-Based Insurance."
  3. Insurance Information Institute. "How to save money on car insurance."
Angela Brown
Angela Brown

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.

Sarah Archambault
Sarah Archambault
  • 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.

Featured in

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Konstantin Halachev
Data reviewed byKonstantin HalachevVP of Engineering & Data Science
Headshot of Konstantin Halachev, VP of Engineering at Insurify
Konstantin HalachevVP of Engineering & Data Science
  • 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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