10 Best Companies for Low-Mileage Car Insurance Discounts in 2024
Farmers, Allstate, and Geico are the best companies for low-mileage car insurance discounts. With Farmers insurance offering $58 monthly average and Geico with lowest minimum coverage of $31, these low-mileage options cater to budget-conscious drivers seeking affordable insurance options.
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Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...
Certified Financial Planner
UPDATED: May 28, 2024
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UPDATED: May 28, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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The best companies for low-mileage car insurance discounts are Farmers, closely followed by Allstate and Geico, as identified by industry experts. These companies offer competitive rates and a variety of discounts tailored to drivers who don’t drive many miles each year.
In this comprehensive guide, we delve into the realm of smart spending, exploring the benefits of low-mileage discounts and providing insights into the best companies for affordable premiums, including Farmers, Allstate, and Geico. Enter your ZIP code in our free tool to start seeing quotes today
Our Top 10 Picks: Best Companies for Low-Mileage Car Insurance Discounts
| Company | Rank | Low-Mileage Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
 | #1 | 14% | A | Flexible Discounts | Farmers |
 | #2 | 12% | A+ | Usage-Based Discounts | Allstate |
 | #3 | 16% | A++ | Low-Mileage Programs | Geico |
 | #4 | 13% | A+ | Pay-Per-Mile Discounts | Nationwide |
 | #5 | 18% | A+ | Reduced Usage | Progressive |
 | #6 | 15% | A | Telematics Discounts | American Family |
 | #7 | 11% | A+ | Mileage-Based Savings | Erie |
 | #8 | 17% | A++ | Mileage Verification | State Farm |
 | #9 | 10% | A | Mileage Tracking | Liberty Mutual |
 | #10 | 20% | A++ | Low-Mileage Programs | Travelers |
With a focus on promoting safer driving habits and unlocking unbeatable savings, this article equips readers with the knowledge to make informed coverage choices and secure cost-effective car insurance
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#1 – Farmers: Top Overall Pick 
Pros:
- Substantial Savings: Average savings of $745 on Auto and Home insurance policies. Take a look at our Farmers insurance company review to learn more.
- Convenient Mobile App: Easily manage policies anytime, anywhere with the redesigned Farmers® Mobile App.
- Valuable Coverage Insights: Get expert advice on ensuring coverage for valuables like jewelry and collectibles.
Cons:
- Limited Signal Availability: Signal® program is not available in some regions of the US.
- State-Specific Restrictions: Some products, coverages, features, and discounts may not be available in every state, potentially limiting options for certain customers.
#2 – Allstate Insurance: Best for Usage-Based Discounts Expert
#3 – Geico: Best for Low Mileage Programs Dealer
Pros:
- Discounts Galore: Geico offers a wide array of discounts, ensuring potential savings for customers across various policies. For more information, check out Geico Auto Insurance review.
- Convenient Accessibility: With user-friendly online tools and helpful agents just a call away, managing policies and making changes is a breeze.
- Comprehensive Coverage: From auto to property to business insurance, Geico provides a diverse range of coverage options to suit different needs.
Cons:
- Limited Language Support: Some residents, like those in Colorado, may experience temporary limitations in accessing services in languages other than English.
- Minor Privacy Concerns: When redirected to partner sites, customers should be aware of potential differences in privacy practices, though this is typically not a significant issue.
#4 – Nationwide: Best for Pay-Per-Mile Discounts Professional
#5 – Progressive: Best for Reduced Usage Expert
Pros:
- Flexible Repair Options: Progressive offers the choice between network repair shops or any shop of your preference, ensuring convenience for policyholders.
- Efficient Claims Process: With the Photo Estimate feature, skip in-person inspections and receive quick estimates, streamlining the claims process. Our complete Progressive review goes over this in more detail.
- 24/7 Accessibility: Policyholders can report or view claims at any time, offering convenience and peace of mind.
Cons:
- Limited Repair Guarantees: While repairs at network shops are guaranteed, using other shops may lack this assurance, potentially affecting repair quality.
- Dependency on Mobile App: The Photo Estimate feature is reliant on the Progressive Mobile App, which may pose accessibility issues for some users.
#6 – American Family: Best for Telematics Discount Dealer
Pros:
- Versatile Coverage: Offers a wide range of insurance options, including vehicle, property, personal, and commercial.
- Bundle Discounts: Save money by bundling multiple policies together. Discover more: AmFam Insurance review
- Easy Online Quotes: Conveniently start your insurance quote online, simplifying the process.
Cons:
- Limited Specialization: Might not cater to specialized insurance needs due to a focus on mainstream coverage.
- Potential Lack of Customization: Bundle savings may come at the expense of tailored coverage options.
#7 – Erie: Mileage-Best for Based Savings Agent
Pros:
- High Customer Retention: Over 90% of customers stay with Erie year after year, indicating satisfaction and trust. For more information: Erie car insurance review.
- Financial Strength: Erie holds an A+ rating from A.M. Best, ensuring reliability and stability in insurance coverage.
- Diversity & Inclusion Commitment: Erie fosters an atmosphere of mutual respect and actively promotes diversity and inclusion.
Cons:
- Limited Information Accessibility: The website lacks detailed information on specific insurance products and coverage options.
- Absence of Online Quoting: There’s no provision for obtaining instant quotes online, potentially leading to inconvenience for customers seeking quick estimates.
#8 – State Farm: Best for Mileage Verification Specialist
#9 – Liberty Mutual: Best for Mileage Tracking Guru
#10 – Travelers: Best for Low Mileage Programs Merchant
Unlock Unbeatable Savings with Low-Mileage Car Insurance Discounts
Unlock unbeatable savings with low-mileage car insurance discounts. By opting for minimum coverage, drivers can secure affordable premiums while enjoying the best discounts. This approach ensures both financial security and legal compliance, making it a smart choice for budget-conscious individuals.
Car Insurance With Low-Mileage Discounts: Monthly Rates by Coverage Level & Provider
Insurance Company Minimum Coverage Full Coverage
Allstate $38 $63
American Family $36 $60
Erie $33 $58
Farmers $33 $58
Geico $31 $56
Liberty Mutual $36 $60
Nationwide $35 $59
Progressive $36 $60
State Farm $35 $59
Travelers $35 $60
Driving fewer miles makes those drivers less of a risk. The lower you fall on the list of high-risk factors, the less you pay for insurance.
This table shows the best low-mileage car insurance companies that offer a range of features designed to provide cost-effective coverage and peace of mind. Let’s explore some of the standout providers and their distinct offerings, highlighting the benefits that make them stand out in the market.
Most companies offer one of two different categories when comparing rates, which is why it’s imperative you learn the difference between low-mileage car insurance discounts and usage-based mileage discounts while you’re comparing premiums.
Understanding Low-Mileage Discounts
Low-mileage discounts are offered to drivers who don’t drive many miles each year.
There is no real rule as to how and when you can drive all your allotted miles throughout the year. You just can’t exceed a certain number of miles each time your policy is renewed if you want to qualify for this discount.
The amount of the discount differs based on the insurance company that offers the discount, which means you’ll want to ask what percentage or dollar amount the discount is when you’re shopping for insurance.
The premise is simple. You and your insurance provider will discuss the number of miles you drive each year.
Low-mileage discounts are available to drivers who maintain a set mileage limit per policy term, offering potential savings on insurance premiums
Daniel Walker Licensed Insurance Agent
The negotiation process works much like a leased vehicle purchase. As long as you keep your annual mileage under the approximate 12,000 miles per year, you don’t pay any fees with a lease.
If you keep your mileage at or below the number you discussed with your provider, you get a discount on your premium. You can drive all those miles in one month and never drive again the rest of the year, or you can disperse them equally throughout the year. It’s your choice.
Explaining Usage-Based Mileage Discounts
Usage-based mileage discounts are a little different in the eyes of different insurance providers. Rather than providing you with a discount based on how few miles you drive, your provider gives you a discount based on how many miles you drive each day, week, month, and year.
Not all companies offer usage-based insurance, but some do. You can get this discount if you are willing to drive with a device in your vehicle that monitors your habits.
When the device reports you driving very little to the insurance company, you’re given a discount on your insurance policy.
It’s different from the low-mileage discount because you’re getting this discount each month rather than it being immediately tacked onto your premium for the year. There’s a downfall to this form of savings, too.
These devices not only monitor the number of miles you drive for a discount, but they also monitor the following:
- Driving speeds
- Braking speeds
If the device decides you brake too hard or drive too far, your insurance provider has the right to raise your premium that month.
Usage-based mileage discounts offer potential savings but raise privacy concerns due to detailed monitoring of driving behaviors.
Michelle Robbins Licensed Insurance Agent
While a usage-based insurance program is not quite the same thing as a low-mileage discount, it is a discount for people who do drive fewer miles. It’s known as a pay-as-you-go policy, and it often allows you to drive anywhere from 12 to 40 miles per day depending on the company you work with.
Be sure to ask about the number of miles you’re permitted to drive each day if you want this discount.
Drivers Who Will Save the Most Money
Low-mileage car insurance offers opportunities for certain demographics to capitalize on reduced premiums by driving fewer miles. Retired individuals, who generally have lower driving needs, can leverage this type of insurance, often benefiting from additional discounts tailored for retirees. Similarly, those who reside and work in downtown areas or close to their workplace stand to gain from their minimal commute distances, aligning well with the advantages provided by low-mileage car insurance policies.
Work-from-home employees and/or business owners also take advantage of discounts like this when they have the opportunity.
It’s easy to get a discount when you’re at home all day for work and for your home life, and it’s becoming easier each time supermarkets and major retailers offer faster shipping and delivery services to people at home. It means less time spent in the car and more money. Enjoy the benefits of a low mileage discount on car insurance as you spend more time at home, saving both time and money with convenient delivery services.
Assessing the Worth of a Low-Mileage Discount
It’s the question many drivers ask. There’s no right answer, but there are some considerations. If you truly drive fewer than the miles allotted each day by the insurance company you choose to purchase a policy with, you can save significantly. If you push it close to that mileage, you risk going over and paying a lot more for that overage than you would to just avoid the low-mileage discount completely.
If you decide on the pay-as-you-go option and have your mileage recorded through the use of a device, it’s imperative you remember every move you make in the car is recorded. If you are late twice in one week and tend to drive a little fast those days or brake hard those days, you appear to be a bad driver. Your rates could go up, and it’s all for nothing.
Learn More: Explaining Pay-As-You-Go Car Insurance
Ways to Get Low Mileage Car Insurance Discounts
Securing a discount on low mileage car insurance is as simple as initiating a conversation with your insurance provider or agent, whether you’re enrolling in a new policy or exploring options within your existing coverage. This discount may apply particularly to used vehicles with mileage below 100,000 miles, depending on the insurer’s criteria. Finding a car insurance company that offers a low mileage discount is easy, especially if you get your quotes online. While you can easily find out which companies have this program, you might not always be able to tell if you qualify initially.
Securing a discount on low mileage car insurance is as simple as initiating a conversation with your insurance provider.
Kristen Gryglik Licensed Insurance Agent
Companies such as Progressive have an online car insurance quote system that lists each program and vehicle feature that is helping to save you money right on the screen. Ultimately, shopping around and comparing rates is your best bet for getting the low mileage car insurance discount.
Discover Extra Discounts While Shopping for Auto Insurance
The best way to save with a policy like this is to look around and compare more than just the premium when shopping for a policy. Sometimes it’s not the lowest dollar amount that equates to the biggest savings. Sometimes the discount is a little smaller, but the miles are a little more lenient. Once you find a policy that works for you, go ahead and keep track of your miles and enjoy that discount. If you don’t qualify for this type of discount thanks to your driving habits, there are other ways to save money on your car insurance.
Case Studies: Low-Mileage and Usage-Based Mileage Discounts in Action
Explore drivers’ savings on car insurance with low-mileage & usage-based discounts. Real case studies reveal smart strategies.
- Case Study #1 – John’s Low-Mileage Discount:John, a retired driver, saved over $500 annually on car insurance by qualifying for a 25% discount due to driving less than 8,000 miles per year.
- Case Study #2# – Sarah’s Usage-Based Mileage Discount: Sarah, a remote worker, saved $200 annually on car insurance with a usage-based mileage discount. Driving under 20 miles daily and using a monitoring device, she got a 15% monthly discount on her premium.
- Case Study #3 – Mark and Lisa’s Combined Discounts:Mark and Lisa, living and working within a mile of their office, qualified for a low-mileage and retiree discount. With both, they saved 35% on car insurance, totaling over $700 annually.
- Case Study #4 – Emily’s Safe Driving Reward: Emily, a cautious driver, enrolled in a safe driving program offered by her insurance company. By maintaining a clean driving record and avoiding any traffic violations for the year, she earned a 20% car insurance discount on her premium, saving her $300 annually.
- Case Study #5 – Alex’s Electric Vehicle Incentive: Alex switched to an electric vehicle and took advantage of his insurance company’s green vehicle discount. This eco-friendly choice qualified him for a 10% discount on his premium, leading to an annual saving of $400 on his car insurance.
Ready to start saving on your car insurance? Learn from these real-life examples and explore how you can maximize your discounts today.
In Summary: Best Companies for Low-Mileage Car Insurance Discounts
Most insurers don’t offer low-mileage car insurance. The term “low-mileage car insurance” is a bit of a myth, because most popular insurance companies won’t base your monthly premium on mileage alone. You can search for auto insurance discounts for low mileage, and that will turn up more results.
If you are only temporarily working from home and are expected to return to work within a few weeks or months, it may not be possible for auto insurance providers to offer a discount on insurance costs for such a short period of time.
Safe drivers in select states could save money on their insurance coverage with a safe driver discount as well. Just keep in mind that if you’re searching for low-mileage auto insurance discounts, you have the correct discount in mind and you understand you may be asking quite a few different companies. Unlock discounts and benefits with low mileage insurance, ideal for drivers who spend less time on the road, saving both time and money.
One way to save is to find the insurance company that offers you the lowest rate for the coverage you need. Enter your ZIP code below to start comparing quotes today.
Frequently Asked Questions
How do low-mileage discounts work?
Low-mileage discounts are offered to drivers who don’t drive many miles each year. By keeping your annual mileage below a certain limit, usually around 12,000 miles, you can qualify for a discount on your car insurance premium.
What are usage-based mileage discounts?
Usage-based mileage discounts are offered by some insurance providers and are based on how many miles you drive each day, week, month, and year. To qualify for this discount, you may need to install a monitoring device in your vehicle that tracks your driving habits.
Which drivers will end up saving the most money?
Retired drivers, those who live and work downtown, work-from-home employees, and business owners who don’t drive much tend to save the most money with low-mileage discounts. Find cheap car insurance quotes by entering your ZIP code
How can I find car insurance companies offering low mileage discounts?
Use online tools to compare rates and check insurer websites for discount information. Consulting agents or brokers can also help.
Do all insurance companies offer low mileage car insurance discounts?
Not all companies offer them, but many do. It’s important to inquire with each insurer you consider.
Is a low-mileage discount worth it?
Whether a low-mileage discount is worth it depends on your driving habits and how close you are to the mileage limit set by your insurance provider. If you consistently drive fewer miles than the limit, it can lead to significant savings. However, if you frequently approach or exceed the limit, it may not be worth it.
How much can I save with a low mileage car insurance discount?
On average, low mileage car insurance discounts can reduce rates by $7 per month. Need the cheapest car insurance possible? Enter your ZIP code into our free comparison tool to find the most affordable rates for your vehicle.
How to find other discounts when shopping for car insurance?
When shopping for car insurance, it’s important to compare more than just the premium. Look for other discounts and benefits offered by different insurance companies. The lowest premium doesn’t always equate to the biggest savings.
Which drivers will end up saving the most money?
Drivers who drive infrequently, retirees, and individuals with short commutes, particularly those living and working in downtown areas, are likely to save the most money on low-mileage car insurance.
Is a low-mileage discount worth it?
What is the AAA Verified Mileage Discount?
The AAA Verified Mileage Discount is a program offered by AAA insurance that provides potential savings on premiums based on verified mileage data.
How do insurance companies determine eligibility for the Annual Mileage Discount?
Eligibility is typically determined by self-reporting the estimated annual mileage during the insurance application process.
How does the Auto Insurance Discount for Low Mileage work?
The Auto Insurance Discount for Low Mileage is a cost-saving incentive provided by insurance companies to policyholders who drive fewer miles than the average driver.
What is Auto Insurance for Low Mileage Drivers?
Auto Insurance for Low Mileage Drivers refers to insurance policies tailored to individuals who drive fewer miles than the average driver.
What factors should I consider when selecting the best auto insurance for low mileage drivers?
When choosing the best auto insurance for low mileage drivers, consider factors such as the available discounts specifically tailored for low mileage, the insurer’s reputation for customer service and claims handling, coverage options that suit your needs, and any additional perks or benefits offered to low mileage drivers.
What is considered the best low mileage car insurance?
The best low mileage car insurance typically offers tailored coverage and discounts specifically designed for drivers who travel fewer miles.
How does the car insurance discount for low mileage work?
The car insurance discount for low mileage is a reduction in insurance premiums offered to policyholders who drive fewer miles than average.
What are car insurance discounts for low-mileage drivers?
Car insurance discounts for low-mileage drivers are incentives offered by insurance companies to policyholders who drive fewer miles than average
Who qualifies for low mileage car insurance?
Drivers who don’t use their cars frequently, such as retirees or those with short commutes, often qualify for low mileage car insurance.
Can I switch to low mileage insurance mid-policy?
Yes, you can typically switch mid-policy, but check with your insurer for any fees or penalties.
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Joel Ohman
Certified Financial Planner
Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...
Certified Financial Planner
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
