Cheap Auto Insurance for Occasional Drivers in 2025 (Cash Savings With These 10 Companies!)

Auto-Owners is our top pick for cheap auto insurance for occasional drivers, with rates starting at $45/mo. State Farm and Infinity also offer competitive rates and discounts for infrequent drivers.

Infrequent drivers are people who drive less than 10,000 miles a year. Their auto insurance can be significantly cheaper than standard coverage.

Our Top 10 Company Picks: Cheap Auto Insurance for Occasional Drivers

If you have a license and don’t own a car but use a family member’s or roommate’s car occasionally, insurance companies will offer low-mileage discounts.

However, you may be required to live in the same household as the person whose car you’re borrowing. Enter your ZIP code into our free quote tool to find the best auto insurance providers for your needs and budget.

#1 – Auto-Owners: Top Overall Pick

Pros

• Affordable Rates: Offers competitive rates starting at only $45 per month for occasional drivers. See our review of Auto-Owners auto insurance for more details.
• Personalized Service: Provides personalized service for occasional drivers by working directly with independent insurance agents.
• High Customer Satisfaction: Auto-Owners has a high customer satisfaction rating from occasional drivers and is known for its quick claims handling process.

Cons

• Availability: Auto-Owners’ car insurance for occasional drivers is only available in 26 states, so it may not be an option for everyone.
• May Require Agent Interaction: For occasional drivers, as a smaller insurance company, Auto-Owners may require more interaction with an insurance agent rather than online or over-the-phone services.

#2 – State Farm: Best for Customer Service

Pros

• Affordable: Competitive rates at only $47 per month for occasional drivers.
• Different Options: The company offers multiple options for coverage levels and deductibles to fit occasional drivers’ different needs and budgets.
• Good Financial Strength: State Farm’s strong financial rating and excellent customer service make it a reliable choice for occasional drivers. Find out more details in our State Farm Company Review

Cons

• Average Discounts: While State Farm offers discounts for occasional drivers, they may not be as extensive as those offered by other insurance companies.
• Poor Claims Service: Claim satisfaction is below average in annual J.D. Power surveys, which is not ideal for occasional drivers who will need claims in the future.

#3 – Infinity: Best for Flexible Payments

Pros

• Wide Range of Coverage: The company provides liability, collision, and comprehensive coverage for occasional drivers. See what coverage options you have in our Infinity auto insurance review.
• Low Rates for High-Risk Drivers: Infinity may offer lower rates for high-risk occasional drivers, making it a more affordable option for those with a less-than-perfect driving record.
• Flexible Payment Plans: Infinity offers flexible payment plans to fit the different budget needs of occasional drivers.

Cons

• Not Available in All States: Similar to Auto-Owners, Infinity is only available in 43 states, so it may not be accessible for all occasional drivers.
• Mixed Customer Reviews: While some customers have had positive experiences with Infinity, other occasional drivers have reported difficulties with claims and customer service.

#4 – Progressive: Best for Qualifying Coverage

Pros

• Qualifying Coverage: Progressive offers flexible coverage, letting occasional drivers tailor policies to their needs and budget. Our complete Progressive review goes over this in more detail.
• User-Friendly Online Platform: Progressive offers a user-friendly online platform for occasional drivers to manage their policies and claims.
• Mobile App: The company offers a mobile app for easy access to policy information and claims filing on the go, which is convenient for occasional drivers.

Cons

• Higher Rates for High-Risk Drivers: While Progressive offers discounts for safe driving, its rates may still be higher for high-risk occasional drivers than for other insurance companies.
• Ranks Low in Customer Satisfaction:  Progressive ranks below average in overall customer satisfaction for occasional drivers.

#5 – The Hartford: Best for Exclusive Benefits

Pros

• AARP Members Discounts: It offers discounts for AARP members, making it a popular choice for older occasional drivers. Learn more about The Hartford in our review of The Hartford auto insurance.
• Lifetime Repair Guarantee: For occasional drivers, the company provides a lifetime repair guarantee for any covered repairs made at their authorized repair shops.
• Accident Forgiveness: The Hartford offers accident forgiveness, which means occasional driver rates won’t increase after your first at-fault accident.

Cons

• Higher Rates for Younger Drivers: While The Hartford offers discounts for older drivers, their rates may be higher for younger occasional drivers.
• Limited Availability: Similar to Infinity and Auto-Owners, The Hartford is only available in select states, so it may not be accessible to all occasional drivers.

#6 – American Family: Best for Loyalty Rewards

Pros

• Loyalty Rewards: Progressive offers loyalty rewards, providing extra savings for long-term customers, a great option for occasional drivers looking to maintain affordable coverage over time.
• Bundle and Save: Offers occasional driver discounts when bundling policies like home and auto insurance. Read our American Family auto insurance review to find out more about the company.
• Variety of Coverage Options: The company offers a variety of coverage options for occasional drivers, including liability, collision, comprehensive coverage, and more.

Cons

• Limited Availability: American Family is only available in 19 states, which may limit options for seeking affordable occasional driver insurance coverage.
• Higher Rates for Younger Drivers:  American Family may have higher rates for younger occasional drivers due to their perceived higher risk.

#7 – Metromile: Best for Low-Mileage Drivers

Pros

• Pay-Per-Mile Option: Metromile’s unique pay-per-mile option helps occasional drivers save on insurance premiums. Learn how mileage-based insurance works in our Metromile auto insurance review.
• Monitoring App Useful When Car Is Stolen: Metromile’s app allows occasional drivers to track their car’s location in case it is stolen, providing added security and peace of mind.
• Roadside Assistance: Metromile offers roadside assistance as an add-on option, which can be convenient for occasional drivers in need of emergency services.

Cons

• Constant Monitoring: Some occasional drivers may feel uncomfortable with the constant monitoring of their driving habits that is required for the pay-per-mile option
• Not Suitable for Frequent Drivers: Metromile may not be a cost-effective option, making it less ideal for those who drive more often than occasional drivers.

#8 – Amica: Best for Dividend Payments

Pros

• Dividend Payments: Amica offers dividend payments on certain policies, giving occasional drivers a potential refund at the end of the policy term to reduce insurance costs.
• Multiple Discounts Available: Amica offers multi-policy, loyalty, and good student discounts, ideal for occasional drivers. Check out our Amica auto insurance review for more insurance savings opportunities.
• Online Services: Amica’s user-friendly online platform offers convenient services like bill pay and policy management, which are perfect for occasional drivers.

Cons

• Limited Availability: Amica is not available in Hawaii, which may limit options for occasional drivers.
• Home Insurance Not Available in All States: Amica does not offer home insurance in all states, which may be a drawback for occasional drivers looking to bundle their policies.

#9 – AAA: Best for Roadside Assistance

Pros

• Discounted Rates for Infrequent Drivers: AAA offers cheap car insurance for low-mileage drivers, which is ideal for occasional drivers.
• Comprehensive Roadside Assistance: AAA insurance provides occasional drivers roadside assistance for towing, jump-starts, and tire changes. Learn more details about this in our review of AAA insurance.
• Multiple Policy Discounts: Occasional drivers who combine their auto insurance with other AAA policies, such as homeowners or life insurance, can result in additional discounts.

Cons

• Membership Required: To avail of AAA’s auto insurance and its benefits, occasional drivers must first become members of the AAA club relevant to their region, which comes with an annual fee.
• Coverage Limitations: Some occasional drivers have reported limitations in policy options and coverage flexibility.

#10 – Liberty Mutual: Best for Occupational Discount

Pros

• Occupational Discounts: Liberty Mutual offers discounts for professions like teachers, first responders, and military personnel, helping occasional drivers lower their auto insurance premiums.
• Rewards for Safe Drivers: Deductible funds help good occasional drivers save money after their first accident
• Usage-Based Savings for Safe Drivers: Track mileage and habits to save up to 30%, ideal for occasional drivers reducing premiums. Learn more in our Liberty Mutual RightTrack review.

Cons

• Expensive: Higher-than-average rates for high-risk drivers, seniors, and occasional drivers under 25.
• Poor Customer Satisfaction: Ranks below average for customer and claims service in the annual J.D. Power survey, which may affect occasional drivers seeking reliable support.

How to Get Cheap Auto Insurance for Infrequent Drivers

How much does occasional driver insurance cost? By the title, you may think an occasional driver is someone who doesn’t drive very often. While this definition is partly true, it does not encompass the whole meaning of the term.

Occasional drivers often receive lower car insurance rates due to reduced risk. It’s important to check if you qualify for part-time driver insurance to take full advantage of these savings.

Occasional Drivers Auto Insurance Monthly Rates by Provider & Coverage Level

You may not qualify for a low-mileage discount if you drive more than that, but you can still get cheap rates from pay-as-you-go auto insurance companies.

Overall, the amount you will pay for car insurance depends on several factors. Insurance companies use these common factors that affect auto insurance rates to set premiums:

• Driver Details: Age, gender, and marital status
• Driving Habits: Annual mileage and history
• Location: ZIP code impact on rates
• Vehicle: Car make and model considerations
• Financial Factor: Credit score influence

In some cases, occasional drivers may pose more of a risk to insurance companies because they are often teen drivers or drivers over 65 years of age. The best way to discover whether being an occasional driver helps you save a significant amount on coverage is to compare rates from multiple providers.

Cheap Auto Insurance Policies for Occasional Drivers

You might wonder, “Does an occasional driver need insurance?” Well, infrequent drivers must carry car insurance, but they have several policy options designed for low-mileage drivers.

Insurance companies also offer discounts on car insurance to occasional drivers, and certain companies may allow you to save as much as 30% on coverage if you drive less than 10,000 miles annually.

Pay-Per-Mile and Usage-Based Auto Insurance

Pay-per-mile insurance is a great option for drivers who clock fewer than 10,000 miles annually.

With most pay-as-you-go car insurance programs, you’ll pay a daily set rate — usually a few dollars per day — and a small fee for miles driven daily.

For example, your set fee might be $3 a day, with a $0.05 charge per mile. So, if you drive five miles one day, your total amount that day would be $3.25.

Read More: Best Pay-As-You-Go Auto Insurance Companies

If you can’t find a pay-per-mile program in your state, see if any companies offer a discount on car insurance policies for driving less.

Minimum Liability Insurance

Drivers may choose to drop extra coverages and carry only the minimum car insurance required in their state. Usually, this means carrying only liability auto insurance. Though switching to a liability-only policy can significantly reduce rates, we only recommend it if your car is old and not worth much. Learn more about cheapest liability-only auto insurance in our guide.

Before dropping any coverage, make sure you understand the difference between collision and comprehensive auto insurance coverage to make sure you don’t need it. For example, without it, you’ll have to pay out of pocket for repairs if your car gets damaged.

However, if your car is old and the cost of collision and comprehensive coverage would equal 10% or more of its value in a year, you can consider dropping these coverages to reduce prices.

Parked Car Insurance

In some cases, insurance companies offer auto insurance for a parked car, sometimes known as storage or stored car insurance. These policies only apply to drivers storing the vehicle and not driving it.

Once you start driving the car regularly, you’ll need to purchase a regular auto policy or pay-per-mile auto insurance.

However, if you won’t be driving for a year or so, it’s worth it to purchase a parked car insurance policy to save on auto insurance until you start driving again. Check out our detailed guide on the best parked car insurance.

Classic Car Insurance

If your car qualifies as a classic car, you should buy classic car insurance. Since classic car insurance is for pleasure use only, they’re good policies for infrequent drivers with older vehicles.

Did you know #ClassicCar insurance can extend to vintage motorcycles, military vehicles, and even some tractors? See how storage, usage, and more play a part in determining coverage. https://t.co/vfJD2ChkYd pic.twitter.com/uy0Dq1uc3M

— Progressive (@progressive) April 9, 2024

Generally, a car must be at least 20 years old to be a classic collector car.

Read More: Does my car qualify for classic auto insurance?

Adding Occasional Drivers to a Policy

Adding a driver to car insurance is not difficult, but your insurance company may have you answer a few questions. Once the added driver is on your insurance policy, you will notice your rates have increased. But if the driver added is an occasional driver, you should be able to get away with paying less for that person’s coverage.

Whether your insurance costs go up a little or a lot, you still need to let your insurance company know when someone else is driving your car. Otherwise, your provider could deny your insurance claim if that person was driving and in an accident.

One common question that arises when considering adding an occasional driver to a car insurance policy is, “How much does it cost to add an occasional driver to insurance?” The answer varies significantly from one insurance provider to another. It may depend on factors such as the occasional driver’s age, driving record, and the frequency with which they are expected to use the vehicle.

Auto Insurance Discounts for Infrequent Drivers

Most car insurance companies offer discounts for various reasons. Some of the most common auto insurance discounts available are:

Best Auto Insurance Discounts for Occasional Drivers by Provider

Discounts on coverage typically help policyholders save 5% to 25%, so ask your provider if you or anyone listed on your policy qualifies for a discount.

Best Ways to Save on Auto Insurance for Occasional Drivers

If you only drive less than 10,000 miles a year, you may be considered an occasional driver. Auto-Owners, State Farm, and Travelers are the cheapest auto insurance companies for infrequent drivers. Teens will get better rates with Geico, but consider signing up for pay-as-you-go car insurance for new drivers for the cheapest rates possible.

Pay-per-mile companies like Metromile track only your mileage to set rates, while other usage-based auto insurance companies track driving habits as well, which can raise rates. Shop around with multiple companies to find the cheapest car insurance for infrequent drivers.

You can also save money on coverage by utilizing discounts. Lowering your coverage level or increasing your deductible are ways to get lower rates on coverage as well, but if you’re ever in an accident, you may regret choosing these routes.

Explore your auto insurance options by entering your ZIP code into our free comparison tool today.