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.
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.
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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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: Friday, November 1 at 12:00 PM PDT.
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.
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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Liability rates start at $16 per month
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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.
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.
$227/mo
4.1
Best choiceBased on 121 verified guest reviews and ratings
How drivers feel about Hugo
Drivers appreciate the excellent prices, flexible payment options, and helpful customer service but dislike the lack of full coverage and difficulty reaching support.
AI-generated from the text of verified reviews collected by Insurify
Best For
Micropayments
No down payments
Fast coverage
How drivers feel about Hugo
Drivers appreciate the excellent prices, flexible payment options, and helpful customer service but dislike the lack of full coverage and difficulty reaching support.
AI-generated from the text of verified reviews collected by Insurify
Best For
Micropayments
No down payments
Fast coverage
Reviews (45)
Javier
November 12, 2024
Verified Purchase
Hugo Insurance is the Best
Hugo was wonderful. We paid for car insurance at a good, low price. It was exactly what we needed to look into. Due to our income, paying for two vehicles for less than $100 is an awesome price. Thank you, Hugo. I recommend others to try it out.
Gabrielle
November 2, 2024
Verified Review
Good
The price is amazing.
Dawn
October 21, 2024
Verified Review
Paying Too Much
It's pretty expensive and they don't really provide much coverage.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NR
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company
Hugo launched in 2021 and is currently the only insurance company offering on-demand car insurance. Drivers can open a Hugo account without paying a down payment up front. Drivers can choose a policy term of three, seven, 14, or 30 days, or six months, and policyholders can pay smaller amounts more frequently instead of all at once. Drivers also receive instant proof of insurance. Hugo currently only offers state-minimum liability coverage in 13 states. J.D. Power and AM Best have not yet evaluated Hugo’s customer satisfaction or financial strength.
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.
$95/mo
4.2
Best choiceBased on 53 verified guest reviews and ratings
Reviews (29)
Cookie
October 15, 2024
Verified Purchase
Excellent
Low mileage rate.
Tasha
October 10, 2024
Verified Purchase
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 Purchase
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.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
NR
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
NR
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
NR
Why we picked this company
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.
Allstate: Best for drivers who don’t want to think about coverage
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.
$61/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.
$133/mo
4.0
Best choiceBased on 5648 verified guest reviews and ratings
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
Reviews (3,073)
Rodney
November 20, 2024
Verified Review
Lower Insurance
The insurance is too high.
Lyudmila
November 14, 2024
Verified Review
No Discount for Seniors
The service is mediocre.
Latonya
November 12, 2024
Verified Review
Not Recommended
I would not recommend Allstate. They did not support me when I needed them most. They didn't believe me or the other party when we said my first accident wasn't my fault. My agent incorrectly reported to the DMV that my insurance had lapsed when it hadn't. They increased my insurance rates four to five times within two years. A representative from my agent's office called me to sell renters insurance, promising a lower monthly rate, which turned out to be false. After I was involved in a hit and run, instead of ensuring my wellbeing, they raised my insurance again to almost $800/month. I find Allstate to be a disappointing car insurance company and I wouldn't recommend them to anyone.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-
Why we picked this company
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
Ample opportunities for bundling discount
Offers a pay-per-mile option
A+ (Superior) financial strength rating from AM Best
Cons
Low customer satisfaction
Rates are merely average compared to other insurers
Below-average rank for customer satisfaction in many regions, according to J.D. Power’s 2024 U.S. Auto Insurance Study
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
▲▼
Snapshot
Progressive
$152
$231 per year
Drivewise
Allstate
$133
Up to 40% off premium
SmartMiles
Nationwide
$182
$38 per month
IntelliDrive
Travelers
$191
Up to 30% off premium
KnowYourDrive
American Family
$161
Up 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.
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.
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.
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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