Low Mileage Car Insurance Discounts
Do you work from home? Or maybe you prefer to take public transit to work? Either way, driving less could earn you discounts on your auto insurance. The amount people drive has shifted since the COVID-19 pandemic, with some people switching to fully or partly remote work. Whether you work from home or just don’t like driving much, your low mileage can earn you discounts on your car insurance.
Key Takeaways
- You can save as much as 20% if you drive less than 7,500 miles a year.
- Pay-per-mile auto insurance discounts give you control over your monthly premiums.
- This option is beneficial for people who live in cities, use public transportation, and do not use their cars often.
Table of Contents
What Is Considered Low-Mileage?
A low mileage driver is someone who drives less than the average driver. According to the Federal Highway Administration, people drive an average of 13,500 miles a year. In order to qualify for a low mileage discount, you must drive less than 7,500 miles a year. This number could be higher if you travel often, or lower if you reside in a city and use your car less.
Is Car Insurance Less Expensive If You Drive Less?
The short answer is yes! If you don’t drive as much as you used to, you could get anywhere from a 5-20% discount on your car insurance. That’s why it’s a good idea to shop around for quotes and look into auto insurance for low-mileage drivers.
Pay-per-mile car insurance is another good option for people who do not put miles on their cars quickly. This type of insurance allows you to pay as you go. How often you drive determines your monthly premium. You pay a monthly fixed rate to help keep your car covered, even when you’re not driving it, then pay a per-mile rate, which is typically only a few cents per mile driven.
How Do I Get a Low-Mileage Car Insurance Discount?
Low mileage discounts are offered by most insurance providers- just ask your insurance agent! There are many ways you can lower your premium:
- Driving less often: Reducing the number of miles you drive can qualify you for your provider’s low-mileage discount. There are many options to help achieve this. If applicable, working from home can reduce the number of miles you drive, even if you work a hybrid schedule. Utilizing other forms of transportation helps, too. If you live in a city, walking or taking public transit more frequently can help lower the number of miles you drive.
- Negotiating with your current insurance carrier: If you already meet the low-mileage driver requirements, let your insurance know you’re driving less and ask about available discounts. Your agent may ask how you typically use your car, whether for business or personal.
- Switch to PPM insurance: With pay-per-mile insurance, your monthly rates are based solely on your driving habits. This makes it an excellent option for people who drive under 10,000 miles a year. Each month, you pay based on the miles you drove last month. No need to change your driving or seek out discounts on premiums.
What Are the Different Types of Low-Mileage Car Insurance?
Low-mileage car insurance programs typically use telematics, a device or tracker you can plug into your car or app you can download, to monitor your driving habits. This technology tracks how fast you drive, harsh acceleration and braking, how long you drive, what time you get into your car, and other habits. It can also track how often you use your phone while driving.
Another way your provider can track your mileage is to have you photograph your odometer every month. This method might be less reliable, but it is simpler to use than telematics technology.
There are two approaches auto insurance carriers usually take to low-mileage auto insurance:
- Low-mileage discounts: Most car insurance providers offer a low-mileage discount if you drive less than a set number of miles, such as 7,000 miles per year.
- Pay per mile: Also known as usage-based and pay-as-you-go, pay-per-mile insurance gives you a monthly rate, and after that, how much you drive determines your premium. If you drive less, you pay less.
Is Low-Mileage the Best Option For Me?
A low-mileage insurance option might be good for you if you work from home, take public transport often, or just don’t drive much. Be sure to ask your agent about a low mileage discount!
In addition to low-mileage discounts, there are many other discount options out there for drivers. Anything from your occupation, your vehicle’s safety features, and even your age can affect not only the cost of your car insurance, but how much you can knock off it! TGS compiled an ultimate guide for you to learn more about car insurance discounts for 2026!
Get Car Insurance at a Rate You Love
We want to help you get the best car insurance rate out there! Here at TGS Insurance, we take the hassle of shopping for your policy out of your hands. We find the best car insurance discounts you qualify for- from low mileage discounts to occupational discounts. Call one of our agents today to learn about how much a low mileage discount can save you today!
Explore Other Auto Insurance Discounts and Savings:
Senior Auto Insurance Discounts
Healthcare Workers’ Car Insurance Discounts
Auto Insurance Discounts for First Responders
Car Insurance Discounts for Students
2023 Car Insurance Discounts Guide