The Best Low-Mileage Car Insurance (2025)
Drivers looking for cheaper premiums should consider low-mileage plans from Allstate, Mile Auto, and Hugo for maximum savings.
Excellent
Why you can trust Insurify: Comparing accurate insurance quotes should never put you at risk of spam. We earn an agent commission only if you buy a policy based on our quotes. Our editorial team follows a rigorous set of editorial standards and operates independently from our insurance partners. Learn more.
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 less 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.
How low-mileage car insurance works
If you’re a low-mileage driver, you can take advantage of a variety of options when shopping for car insurance:
Telematics: Some companies use telematics programs that track your driving performance and provide data to the insurer. If you demonstrate safe driving habits, you can receive lower premiums.
Pay per mile: With a pay-per-mile policy, insurance companies typically charge you a base rate for coverage, plus a per-mile rate for the number of miles you drive each month.
Pay as you go: Most car insurance companies offer only six- or 12-month policies. But with Hugo, you can get a policy for three, seven, 14, and 30 days, as well as six months. Unfortunately, the insurer offers only state-minimum liability insurance.
Low-mileage discount: Some insurance companies offer discounts to people who drive fewer miles. The exact discount will vary by insurer.
If you work from home, are retired, or have a very short daily commute, you might consider a low-mileage car insurance policy to help you save.
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
Mile Auto: Best for privacy
Allstate: Best for drivers who don’t want to think about coverage
Best 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. Though it’s important to keep in mind privacy concerns as you start sharing this information with your insurance company.
The table below shows how much you could save with some different insurers’ telematics programs.
How to choose the best low-mileage car insurance
If you think low-mileage car insurance could be right for you, follow these steps to choose a policy:
Check your mileage. Start tracking your mileage to get an idea of how many miles you put on your car each month. This will give you a clearer idea of whether low-mileage car insurance makes sense for you.
Compare car insurance quotes. Many large car insurance companies have some sort of telematics program. Compare quotes from three to five insurers with these programs, and read customer reviews to get a better sense of how each company does business.
Consider pay-per-mile options. Consider whether you want to install a tracking device in your car or whether you’d rather pay a base rate plus a rate for each mile you drive. Not every insurer requires you to install a tracking device to submit your monthly mileage information.
Purchase a policy. Once you’ve chosen an insurer, provide some additional details and purchase your new low-mileage policy.
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.
Does lower mileage reduce car insurance costs?
Sometimes. Being a low-mileage driver can help you reduce your car insurance costs if you put less than 10,000 miles on your car each year.
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.
)
)
)
){kind=logo}
){kind=small}
){kind=small}
){kind=small}
)
)
)
)