What is a low-mileage insurance discount?
Many insurance companies offer discounts for low annual mileage. Why? Driving less makes you less likely to get into an accident and file a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing.. Consequently, you’re less of a risk to the insurance company, so it will offer you lower prices.
What constitutes low mileage? It depends on the insurance company.
“The top end of most carriers to any amount of a discount is usually in that 7,000 to 8,000 annual mileage range,” says Janes-Bartley. “Meaning if you drive 6,800 miles annually, you might get a very small discount, and if you drive 3,000 miles annually, you might get a bigger discount.”
“Usually, the vehicles eligible cannot be collector cars, classic or antique cars, or motorhome-type vehicles,” Janes-Bartley says.
When you sign up for your car insurance policy, you provide your carrier with your estimated annual mileage. You can base this on your odometer readings or calculate your weekly work commute and do some math to get an annual number. Your insurance company will give you a rate based on this information.
Low-mileage discounts are usually factored into your base rate. They differ from pay-per-mile programs that charge a base rate along with a per-mile rate. The insurance company provides a device that attaches to your car or uses an app to monitor your mileage, charging for the actual miles driven.
How much is a low-mileage discount?
The amount of a low-mileage discount varies from company to company. The average is about 7% but can be much bigger. Each insurance company has its own limit for what constitutes low mileage, usually around 5,000 or 7,500 miles per year. You can save as little as $95 or as much as $700 a year on your car insurance.
Low-mileage car insurance discounts by state
Each state has different factors that weigh heavily into its insurance rates. Weather is a major player when it comes to prices, as are the number of uninsured drivers and litigation costs for claims-related lawsuits. That’s why you might see such a variance in costs.
Take a look at the table below to see the low-mileage discounts by state. As you can see, some states like New Hampshire and New Jersey only see a discount of about 4% for people who drive under 7,500 miles a year, but in most states, it’s 6% or more. Discounts taper off the more miles you drive. As you can see from the table, when you drive 12,000 to 14,999 miles you start getting into the 2% discount range in most states.
| State | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Alaska | $1,667 | $1,542 | $125 | 7% |
| Alabama | $1,735 | $1,614 | $121 | 7% |
| Arkansas | $1,895 | $1,779 | $116 | 7% |
| Arizona | $1,879 | $1,746 | $133 | 7% |
| California | $2,499 | $2,073 | $427 | 17% |
| Colorado | $2,158 | $2,023 | $135 | 7% |
| Connecticut | $1,761 | $1,595 | $166 | 9% |
| Washington, D.C. | $1,507 | $1,411 | $96 | 6% |
| Delaware | $2,139 | $1,946 | $194 | 8% |
| Florida | $3,515 | $3,220 | $295 | 9% |
| Georgia | $2,269 | $1,924 | $345 | 15% |
| Hawaii | NA | NA | NA | NA |
| Iowa | $1,491 | $1,388 | $103 | 8% |
| Idaho | $1,022 | $942 | $80 | 8% |
| Illinois | $1,722 | $1,600 | $121 | 8% |
| Indiana | $1,349 | $1,274 | $75 | 6% |
| Kansas | $2,039 | $1,872 | $166 | 8% |
| Kentucky | $2,373 | $2,213 | $160 | 7% |
| Louisiana | $3,572 | $3,323 | $249 | 7% |
| Massachusetts | $2,058 | $1,861 | $198 | 10% |
| Maryland | $2,665 | $2,509 | $156 | 7% |
| Maine | $878 | $815 | $63 | 7% |
| Michigan | $3,754 | $3,414 | $340 | 9% |
| Minnesota | $2,127 | $1,998 | $129 | 6% |
| Missouri | $2,539 | $2,386 | $153 | 6% |
| Mississippi | $2,197 | $2,026 | $172 | 8% |
| Montana | $1,882 | $1,764 | $118 | 7% |
| North Carolina | NA | NA | NA | NA |
| North Dakota | $1,680 | $1,561 | $119 | 7% |
| Nebraska | $2,594 | $2,381 | $213 | 8% |
| New Hampshire | $1,561 | $1,501 | $60 | 4% |
| New Jersey | $2,621 | $2,518 | $103 | 4% |
| New Mexico | $1,709 | $1,552 | $157 | 10% |
| Nevada | $2,118 | $1,983 | $135 | 6% |
| New York | $3,939 | $3,442 | $497 | 11% |
| Ohio | $1,162 | $1,091 | $71 | 6% |
| Oklahoma | $2,160 | $2,031 | $129 | 6% |
| Oregon | $1,685 | $1,578 | $107 | 7% |
| Pennsylvania | $2,427 | $2,224 | $203 | 8% |
| Rhode Island | $2,639 | $2,480 | $159 | 7% |
| South Carolina | $1,986 | $1,844 | $142 | 7% |
| South Dakota | $2,295 | $2,104 | $191 | 8% |
| Tennessee | $1,805 | $1,688 | $117 | 7% |
| Texas | $2,870 | $2,616 | $255 | 9% |
| Utah | $1,770 | $1,652 | $118 | 7% |
| Virginia | $1,675 | $1,551 | $125 | 7% |
| Vermont | $1,424 | $1,335 | $89 | 6% |
| Washington | $1,592 | $1,513 | $79 | 5% |
| Wisconsin | $1,643 | $1,536 | $107 | 6% |
| West Virginia | $1,806 | $1,676 | $130 | 7% |
| Wyoming | $2,253 | $2,151 | $102 | 5% |
| State | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Alaska | $1,169 | $1,100 | $69 | 6% |
| Alabama | $1,682 | $1,608 | $74 | 4% |
| Arkansas | $1,982 | $1,875 | $107 | 6% |
| Arizona | $1,883 | $1,782 | $100 | 5% |
| California | $2,499 | $2,139 | $360 | 14% |
| Colorado | $2,847 | $2,731 | $116 | 4% |
| Connecticut | NA | NA | NA | NA |
| Washington, D.C. | $1,395 | $1,330 | $65 | 5% |
| Delaware | $2,348 | $2,165 | $183 | 6% |
| Florida | $4,055 | $3,832 | $223 | 6% |
| Georgia | $2,506 | $2,065 | $441 | 18% |
| Hawaii | NA | NA | NA | NA |
| Iowa | $1,494 | $1,395 | $99 | 7% |
| Idaho | $1,147 | $1,076 | $71 | 6% |
| Illinois | $1,758 | $1,654 | $104 | 7% |
| Indiana | $1,382 | $1,321 | $61 | 4% |
| Kansas | $2,349 | $2,202 | $147 | 5% |
| Kentucky | $2,335 | $2,239 | $96 | 4% |
| Louisiana | $3,713 | $3,540 | $173 | 5% |
| Massachusetts | $2,031 | $1,885 | $146 | 7% |
| Maryland | $2,888 | $2,814 | $73 | 4% |
| Maine | $816 | $775 | $41 | 5% |
| Michigan | $4,784 | $4,407 | $377 | 8% |
| Minnesota | $2,261 | $2,147 | $114 | 5% |
| Missouri | $2,642 | $2,522 | $120 | 5% |
| Mississippi | $2,469 | $2,328 | $141 | 6% |
| Montana | $906 | $874 | $33 | 4% |
| North Carolina | NA | NA | NA | NA |
| North Dakota | $1,780 | $1,680 | $101 | 5% |
| Nebraska | $2,935 | $2,736 | $198 | 7% |
| New Hampshire | $1,556 | $1,513 | $43 | 3% |
| New Jersey | $2,935 | $2,831 | $104 | 4% |
| New Mexico | $1,476 | $1,328 | $148 | 10% |
| Nevada | $2,285 | $2,182 | $103 | 4% |
| New York | $4,969 | $4,402 | $566 | 10% |
| Ohio | $1,179 | $1,124 | $55 | 5% |
| Oklahoma | $2,387 | $2,258 | $129 | 5% |
| Oregon | $1,802 | $1,723 | $80 | 5% |
| Pennsylvania | $2,279 | $2,087 | $193 | 8% |
| Rhode Island | $3,053 | $2,772 | $281 | 9% |
| South Carolina | $1,627 | $1,556 | $71 | 4% |
| South Dakota | $2,534 | $2,372 | $162 | 6% |
| Tennessee | $1,957 | $1,857 | $101 | 5% |
| Texas | $2,417 | $2,269 | $148 | 6% |
| Utah | $1,808 | $1,730 | $78 | 4% |
| Virginia | $1,544 | $1,465 | $78 | 5% |
| Vermont | $1,047 | $1,032 | $15 | 1% |
| Washington | $1,738 | $1,675 | $64 | 4% |
| Wisconsin | $1,606 | $1,512 | $94 | 6% |
| West Virginia | $1,402 | $1,327 | $75 | 5% |
| Wyoming | $1,145 | $1,103 | $43 | 4% |
| State | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Alaska | $1,169 | $1,122 | $47 | 4% |
| Alabama | $1,682 | $1,624 | $59 | 3% |
| Arkansas | $1,982 | $1,898 | $84 | 5% |
| Arizona | $1,706 | $1,647 | $59 | 4% |
| California | $2,499 | $2,250 | $250 | 10% |
| Colorado | $2,847 | $2,764 | $83 | 3% |
| Connecticut | NA | NA | NA | NA |
| Washington, D.C. | $1,395 | $1,364 | $31 | 2% |
| Delaware | $2,348 | $2,225 | $123 | 4% |
| Florida | $4,055 | $3,895 | $160 | 4% |
| Georgia | $2,506 | $2,176 | $330 | 13% |
| Hawaii | NA | NA | NA | NA |
| Iowa | $1,494 | $1,418 | $76 | 6% |
| Idaho | $1,147 | $1,097 | $49 | 4% |
| Illinois | $1,507 | $1,417 | $90 | 6% |
| Indiana | $1,382 | $1,335 | $47 | 3% |
| Kansas | $2,349 | $2,227 | $122 | 4% |
| Kentucky | $2,335 | $2,261 | $73 | 3% |
| Louisiana | $3,713 | $3,574 | $139 | 4% |
| Massachusetts | $1,989 | $1,867 | $122 | 6% |
| Maryland | $2,888 | $2,814 | $73 | 4% |
| Maine | $816 | $786 | $31 | 4% |
| Michigan | $4,784 | $4,577 | $207 | 4% |
| Minnesota | $2,274 | $2,173 | $101 | 4% |
| Missouri | $2,642 | $2,548 | $94 | 4% |
| Mississippi | $2,469 | $2,363 | $106 | 5% |
| Montana | $906 | $898 | $8 | 1% |
| North Carolina | NA | NA | NA | NA |
| North Dakota | $1,780 | $1,694 | $86 | 4% |
| Nebraska | $2,935 | $2,780 | $154 | 5% |
| New Hampshire | $1,556 | $1,521 | $36 | 2% |
| New Jersey | $2,935 | $2,876 | $59 | 2% |
| New Mexico | $1,476 | $1,369 | $107 | 7% |
| Nevada | $2,285 | $2,218 | $67 | 3% |
| New York | $5,010 | $4,574 | $436 | 8% |
| Ohio | $1,179 | $1,131 | $48 | 4% |
| Oklahoma | $2,387 | $2,286 | $101 | 4% |
| Oregon | $1,802 | $1,743 | $60 | 3% |
| Pennsylvania | $2,279 | $2,138 | $141 | 6% |
| Rhode Island | $3,053 | $2,929 | $124 | 4% |
| South Carolina | $1,627 | $1,556 | $71 | 4% |
| South Dakota | $2,534 | $2,401 | $134 | 5% |
| Tennessee | $1,957 | $1,875 | $82 | 4% |
| Texas | $2,417 | $2,279 | $139 | 5% |
| Utah | $1,808 | $1,751 | $56 | 3% |
| Virginia | $1,544 | $1,476 | $67 | 5% |
| Vermont | $1,047 | $1,032 | $15 | 1% |
| Washington | $1,738 | $1,700 | $39 | 2% |
| Wisconsin | $1,604 | $1,522 | $82 | 5% |
| West Virginia | $1,402 | $1,342 | $60 | 4% |
| Wyoming | $1,145 | $1,135 | $11 | 1% |
| State | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Alaska | $1,169 | $1,148 | $21 | 2% |
| Alabama | $1,682 | $1,664 | $19 | 1% |
| Arkansas | $1,982 | $1,941 | $41 | 2% |
| Arizona | $1,706 | $1,672 | $34 | 2% |
| California | $2,499 | $2,353 | $146 | 6% |
| Colorado | $2,847 | $2,811 | $36 | 1% |
| Connecticut | NA | NA | NA | NA |
| Washington, D.C. | $1,464 | $1,438 | $26 | 2% |
| Delaware | $2,790 | $2,694 | $96 | 3% |
| Florida | $4,055 | $3,964 | $90 | 2% |
| Georgia | $2,506 | $2,299 | $208 | 8% |
| Hawaii | NA | NA | NA | NA |
| Iowa | $1,434 | $1,394 | $40 | 3% |
| Idaho | $1,147 | $1,119 | $28 | 2% |
| Illinois | $1,507 | $1,445 | $62 | 4% |
| Indiana | $1,331 | $1,309 | $21 | 2% |
| Kansas | $2,547 | $2,479 | $68 | 2% |
| Kentucky | $2,335 | $2,287 | $48 | 2% |
| Louisiana | $3,713 | $3,621 | $92 | 2% |
| Massachusetts | $2,005 | $1,936 | $69 | 4% |
| Maryland | $2,888 | $2,814 | $73 | 4% |
| Maine | $895 | $865 | $30 | 3% |
| Michigan | $4,784 | $4,662 | $122 | 3% |
| Minnesota | $2,274 | $2,215 | $59 | 2% |
| Missouri | $2,642 | $2,591 | $51 | 2% |
| Mississippi | $2,469 | $2,408 | $61 | 3% |
| Montana | NA | NA | NA | NA |
| North Carolina | NA | NA | NA | NA |
| North Dakota | $1,780 | $1,737 | $43 | 2% |
| Nebraska | $2,935 | $2,856 | $79 | 3% |
| New Hampshire | $1,643 | $1,627 | $17 | 1% |
| New Jersey | $2,935 | $2,887 | $49 | 2% |
| New Mexico | $1,476 | $1,417 | $59 | 4% |
| Nevada | $2,285 | $2,255 | $30 | 1% |
| New York | $5,010 | $4,716 | $294 | 6% |
| Ohio | $1,179 | $1,145 | $34 | 3% |
| Oklahoma | $2,387 | $2,340 | $47 | 2% |
| Oregon | $1,802 | $1,772 | $31 | 2% |
| Pennsylvania | $2,279 | $2,188 | $91 | 4% |
| Rhode Island | $3,053 | $2,929 | $124 | 4% |
| South Carolina | NA | NA | NA | NA |
| South Dakota | $2,534 | $2,470 | $64 | 2% |
| Tennessee | $1,957 | $1,904 | $54 | 3% |
| Texas | $2,417 | $2,365 | $53 | 2% |
| Utah | $1,808 | $1,781 | $27 | 1% |
| Virginia | $1,475 | $1,432 | $43 | 3% |
| Vermont | NA | NA | NA | NA |
| Washington | $1,738 | $1,713 | $26 | 2% |
| Wisconsin | $1,676 | $1,617 | $59 | 3% |
| West Virginia | $1,610 | $1,545 | $65 | 4% |
| Wyoming | NA | NA | NA | NA |
Low-mileage car insurance discounts by company
Insurance companies take several factors into account when determining rates. One company might weigh one factor more heavily than another, which is why you might see different rates across different companies, even in the same state. So, at some companies, low mileage means a bigger discount than others.
The table below shows some average low-mileage car insurance discounts based on the company. USAA has the best low-mileage rates, but it is only available to military members and their families. Travelers has the next best low-mileage rates and is available to everyone. If you drive under 7,500 miles a year, you’ll pay an average of $1,444 per year, saving $181.
| Company group | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Allstate | $3,392 | $3,126 | $267 | 8% |
| Farmers | $3,426 | $2,658 | $768 | 22% |
| Geico | $1,901 | $1,783 | $118 | 6% |
| Nationwide | $2,664 | $2,129 | $535 | 20% |
| Progressive | $2,361 | $2,190 | $171 | 7% |
| State Farm | $1,825 | $1,633 | $192 | 10% |
| Travelers | $1,625 | $1,444 | $181 | 10% |
| USAA | $1,319 | $1,225 | $95 | 7% |
| Company group | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Allstate | $3,638 | $3,370 | $267 | 9% |
| Farmers | $3,426 | $2,761 | $665 | 19% |
| Geico | $1,890 | $1,775 | $114 | 6% |
| Nationwide | $2,664 | $2,233 | $430 | 16% |
| Progressive | $2,361 | $2,235 | $126 | 6% |
| State Farm | $2,602 | $2,369 | $234 | 9% |
| Travelers | $1,625 | $1,470 | $156 | 9% |
| USAA | $1,319 | $1,241 | $79 | 6% |
| Company group | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Allstate | $3,638 | $3,428 | $209 | 7% |
| Farmers | $3,426 | $2,996 | $429 | 13% |
| Geico | $1,890 | $1,801 | $89 | 5% |
| Nationwide | $2,664 | $2,433 | $231 | 9% |
| Progressive | $2,361 | $2,265 | $96 | 4% |
| State Farm | $2,602 | $2,483 | $119 | 5% |
| Travelers | $1,625 | $1,520 | $105 | 6% |
| USAA | $1,319 | $1,283 | $36 | 3% |
| Company group | Before discount | After discount | $ Difference | % Difference |
|---|---|---|---|---|
| Allstate | $3,638 | $3,525 | $113 | 4% |
| Farmers | $3,426 | $3,202 | $223 | 7% |
| Geico | $1,890 | $1,850 | $40 | 2% |
| Nationwide | $2,664 | $2,529 | $135 | 5% |
| Progressive | $2,361 | $2,305 | $56 | 2% |
| State Farm | $2,602 | $2,532 | $71 | 3% |
| Travelers | $1,625 | $1,563 | $62 | 4% |
| USAA | $1,519 | $1,484 | $35 | 2% |
How low-mileage car insurance discounts work
Typically, if you drive fewer miles, you will pay less for car insurance. You’ll simply provide an estimate of your annual mileage to your insurance company, and your rates will be adjusted accordingly.
It’s important to review your policy to find out what the annual mileage is listed as; most companies assume an average of 12,000 a year, but others may set it at a higher or lower number. If your average mileage is lower, simply make the change on your policy to get the discount.
How do insurance companies verify mileage?
This will depend on your insurance company, but most simply take your word for it.
“Some carriers require mileage tracking, some do not,” Janes-Bartley says. “Some require a photo of the most recent oil change from time to time to document mileage. Carriers can and do use third-party data sources to gather odometer readings so even if the driver does not have to use an app or send ongoing documentation, there are other ways they can get that data and will when they can. If third-party data is unavailable, carriers will contact the driver for documentation and remove the discount if the driving is higher than estimated or documentation is not provided.”
The insurance company will come up with a rate based on that mileage.
PEOPLE ASK
What happens if you go over your annual mileage on insurance?
It depends. Sometimes, your insurance company won’t know. But what if you were to get into an accident on your way to work? Now, your insurance company knows you used your vehicle to commute regularly, not just drive occasionally. It’s best to be honest.
How much can you save with low-mileage discounts?
On the low end, you can save about 5% on your car insurance if you only drive about 7,500 miles a year. Some insurance companies discount your rates by as much as 22%. This can save you between $95 and $768, depending on the company and your individual situation.
Low-mileage discounts: FAQ’s
Is low mileage different from pay-per-mile insurance?
Low-mileage discounts on standard car insurance only require an estimate of your annual mileage, and then your rates are calculated accordingly. Pay-per-mile insurance requires that your driving data be recorded and sent to the insurance company via a telematics device—either an app on your phone or a small device attached to your steering wheel. Generally, you’ll be charged a base rate and then a certain rate for actual miles driven, for instance, 80 cents a mile.
Does how much you drive impact car insurance?
Typically, the more miles you drive, the more car insurance costs, and vice versa. This is because fewer miles on the road mean a reduced chance of an accident.
How do you calculate annual mileage for insurance?
You can do a couple of things to calculate your annual mileage for insurance purposes. Look at your odometer at the end of the month and multiply the miles traveled by 12. This can give you a rough estimate of how much you drive in a year. Another way to estimate your yearly mileage is to look at your work commute and simply take that weekly number and multiply, remembering that you don’t drive to work on the weekends, but taking into account any errands or other driving you do regularly.
Helpful auto insurance tools and calculators
