The more miles you drive per year, the higher your insurance premium will be. However, unless you’ve signed up for a usage-based insurance program like Allstate Drivewise, mileage is not the only factor auto insurance companies take into account when determining rates. It’s just one factor, combined with your driving history, home address, vehicle type, and more. Still, how many miles you drive per year will have an effect on the cost of your car insurance.
What’s Considered Low Mileage?
Since most people drive about 10,000 miles annually, low mileage is around 7,500 miles or less.
If you’re a low-mileage driver, you can get discounts by enrolling in a usage-based insurance program. With some of these programs, you’ll get a discount just for signing up, plus bigger discounts if you have low mileage and drive safely.
||Liberty Mutual RightTrack
||State Farm Drive Safe & Save
||40% or more; varies by state
||Average savings of those who saved: $156 annually (excludes Alaska, Hawaii, and New York)
When enrolled in one of these programs, your mileage will be tracked with either an app or a physical device installed in your car. Along with mileage, some of these programs track driving behaviors like hard braking, rapid acceleration, and distracted driving. The less you drive and the safer you drive, the more you’ll save.
Along with usage-based programs, there are also insurance companies that run entirely on a pay-per-mile model, such as Metromile and Root. Thanks to this structure, these insurers have the lowest average annual prices of any company we’ve tested: $662 and $829, respectively. Always compare auto insurance quotes between providers to find out how much you can save by driving fewer miles.