How to Get a Low-Mileage Discount

If you drive fewer miles than average each day, you might be eligible for a low-mileage discount on your auto insurance policy. You can buy low-mileage discount auto insurance from 19 major providers distinct from pay-per-mile insurance programs. Customers save 18% on average with affordable low-mileage discount auto insurance. However, qualification rules and savings amounts vary widely from company to company.

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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc...

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years (BBB A+). He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like Reviews.com and Safeco. He reviews content, ensuring that ex...

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Jul 22, 2021

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Things to Remember

  • 19 major insurance companies offer low-mileage discount auto insurance to drivers
  • Drivers save an average of 18% off their annual premium with this discount
  • Qualification rules vary, but typically you must drive less than 5,000 miles annually to earn this discount

If you drive fewer miles than the average person, you may qualify for a low-mileage discount on your auto insurance.

Drivers typically save around 18% on their annual premium with affordable low-mileage discount auto insurance.

Keep reading to learn what companies offer this discount, find out how to qualify, and discover the fundamental differences between a low-mileage discount and usage-based auto insurance.

After comparing affordable low-mileage discount auto insurance rates, remember to enter your ZIP code into our free tool above to receive auto insurance quotes from the best companies near you.

What auto insurance companies offer a low-mileage discount?

These days, people are driving their vehicles far less often. Many drivers swapped out morning commutes for home offices. Others rely on public transportation, carpooling, or biking.

If you’re not driving as much, you might be eligible for a low-mileage discount on your auto insurance rates.

Fortunately, those hoping to buy low-mileage discount auto insurance have plenty of companies to compare.

Take a look at this list of the 19 national insurance providers that advertise this savings opportunity, along with the discount percentage if it is known.

  • AAA
  • Allstate
  • American Family
  • Amica – 10%
  • Country Financial
  • Esurance – 15%
  • Farmers
  • GEICO
  • Liberty Mutual
  • MetLife
  • Nationwide
  • Progressive
  • Safeco – 20%
  • State Farm – 30%
  • The General
  • The Hanover
  • The Hartford
  • Travelers
  • USAA

It’s also possible that local agencies near you offer this deal to drivers. Regardless, the number of miles you drive daily is not the only factor that affects auto insurance rates.

Insurance underwriters also consider your age, driving record, coverage needs, and ZIP code when calculating your costs.

Auto insurance laws also vary by state. Therefore, the best low-mileage discount auto insurance company for you might not necessarily be the most affordable provider for your neighbor.

To earn your cheapest possible auto insurance quotes, compare rates online from multiple providers and ask about other auto insurance discounts.

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How much can you save with a low-mileage discount?

After earning a low-mileage discount, drivers save an average of 18% on their annual auto insurance premiums.

However, eligibility rules and savings amounts vary by provider.

For example, State Farm Insurance Company lowers customer rates by up to 30% with proof you drove less than 7,500 miles annually.

However, Safeco Insurance Company customers only earn the company’s 20% discount for driving under 4,000 miles.

Also, the company offering the most significant rate reduction might not provide you with the cheapest overall auto insurance quote.

To take full advantage of the low-mileage discount, compare quotes online from different companies before signing any policies.

How do you qualify for a low-mileage auto insurance discount?

The rules for earning a low-mileage discount depend on what insurance provider you use.

So how many miles is a low-mileage discount? Typically, you must drive fewer miles than average to earn the rate reduction.

According to DataUSA, the average commute length is 25.7 minutes. Typically, Americans drive 13,500 miles annually. But what do insurance companies consider low mileage?

With Safeco, driving fewer than 4,000 miles earns you the most considerable rate reduction. In addition, however, you’ll earn a discount for driving less than 25,000 per year.

The General and Liberty Mutual expect the fewest number of miles driven per year at 5,000. State Farm and MetLife expect the next lowest mileage at 7,500 miles.

For Allstate, the number increases slightly to 8,000 miles.

Nationwide, Progressive, and USAA reduce your rates if you drive fewer than 10,000 miles per year. However, you must be older than 29 if you use USAA.

Unfortunately, Nationwide’s discount is only available in California. Similarly, the value from Progressive is only available in California and Texas.

Country Financial customers receive this discount if their car is only used for pleasure driving.

Finally, you can only earn the Travelers discount by enrolling in Travelers IntelliDrive, a pay-per-mile insurance program.

What types of low-mileage auto insurance are there?

It’s easy to confuse low-mileage auto insurance discounts with telematics programs like pay-per-mile insurance (PPM) and usage-based insurance (UBI). However, the three are entirely separate.

So first, what is the low-mileage discount? A low-mileage discount is simply a temporary rate reduction earned after you meet the qualification rules set by your insurance provider.

However, PPM and UBI are private passenger auto insurance policies with monthly insurance rates that are not fixed.

Telematics specifically refers to any technology that tracks and stores your driving information. Typically, this technology comes in the form of a mobile application, plug-in device, or windshield device.

Your driving data is then analyzed to determine your monthly auto insurance costs. Therefore, your PPM and UBI insurance rates change from month to month.

With PPM insurance, you pay a monthly base rate plus pennies per every mile driven. Usually, only your mileage is tracked. No other driving habits impact your monthly PPM costs.

With UBI insurance, other driving habits are tracked and scored. This may include but isn’t limited to hard braking events, speed, nighttime driving, and the number of miles driven daily.

In the table below, compare the different UBI and PPM programs from the leading major insurance providers.

Usage-Based Insurance Programs by Auto Insurance Company
CompaniesProgram NamePotential Enrollment DiscountPotential Earned SavingsProgram Type (UBI or PPM)Device
AAAAAADrive/AAAOnboard5%25%UBIMobile App
AllstateDrivewise10%25%UBIMobile App
AllstateMilewisen/an/aPPMMobile App
American FamilyKnowYourDrive10%20%UBIPlug-in
EsuranceDriveSense5%30%UBIMobile App
SafeCoRightTrack5%30%UBIMobile App and Plug-in
Liberty MutualByMilen/an/aPPMMobile App and Plug-in
MetLifeMy Journey25%30%UBIPlug-in
NationwideSmartRide10%40%UBIMobile App or Plug-in
NationwideSmartMilesn/an/aPPMMobile App or Plug-in
ProgressiveSnapshot$4720%UBIMobile App or Plug-in
Mile AutoMile Auton/an/aPPMNeither
State FarmDrive Safe & Save5%30%UBIMobile App or Plug-in
The HartfordTrueLane5%25%UBIPlug-in
TravelersIntelliDrive10%30%UBIMobile App
MetromileMetromilen/an/aPPMMobile App
GEICODriveEasy5%25%UBIMobile App
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Read the fine print of your user agreement before accepting one of the telematics programs from an insurer.

Some drivers rightfully worry about potential privacy issues.

UBI and PPM programs also don’t guarantee that your rates will stay low. Some companies use your driving data to increase your monthly rates.

Fortunately, the privacy issues and rate increases do not apply to the low-mileage discount.

With a low-mileage discount, the only information gathered about you is your annual mileage. If you don’t earn the rate reduction, your rates remain the same.

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Is auto insurance cheaper if you drive less?

The number of miles you drive can impact your auto insurance rates. However, state laws and regulations vary.

Also, some insurance providers do not change your insurance rates unless your annual mileage is exceptionally high.

The table below compares the average annual auto insurance rates by company based on commute length. These are the rates available in the state of Texas.

Average Annual Auto Insurance Rates by Commute Length
CompaniesAverage Annual Rates for a 10 Mile CommuteAverage Annual Rates for a 25 Mile Commute
USAA$2,456.42$2,519.83
State Farm$2,879.95$2,879.95
GEICO$3,201.27$3,325.50
Nationwide$3,867.57$3,867.57
Progressive$4,664.85$4,664.85
American Family$4,849.18$4,849.18
Allstate$5,354.10$5,616.53
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As you can see, State Farm, Nationwide, Progressive, and American Family do not change Texans’ insurance costs based on commute length. However, USAA, GEICO, and Allstate do.

Ultimately, driving less means you’re at a lower risk of being involved in an accident.

This is especially true if you no longer drive during heavily trafficked times of day, like rush hour.

Therefore, auto insurance prices can sometimes be lower simply because you drive less often, especially if your company offers a low mileage discount.

What are easy ways to lower your mileage?

If you want to try lowering your mileage to earn a discount, there are a few easy things you can do.

Check out the following suggestions:

  • Work from home
  • Walk or bike when possible
  • Use public transportation
  • Carpool
  • Use ride-sharing services
  • Plan your trips ahead of time

If your workplace doesn’t typically allow employees to work from home, bring a proposal to your boss showing how working from home can reduce overhead costs.

You can also plan to complete multiple trips and errands all in one go in the most efficient way to minimize unnecessary mileage.

Who should consider low-mileage auto insurance discounts?

People who naturally drive fewer miles annually than average should consider asking about a low-mileage discount.

That includes:

  • People who work from home
  • Senior citizens
  • Student drivers attending and living at college
  • People studying abroad
  • People with short or no commutes

If you believe you qualify for a low-mileage discount, ask your provider if the savings are reflected in your policy rates.

While your insurer possibly applied the rate reduction automatically, never hesitate to double-check.

Low-Mileage Discount: The Bottom Line

Overall, the low-mileage discount is a common and easy way to earn a substantial rate reduction on your auto insurance.

Every insurance company offers different discount opportunities to drivers, with varying eligibility rules and rate reductions. So shop around to earn your lowest possible prices.

Now that you know how to buy low-mileage discount auto insurance, enter your ZIP code into our free rate tool below to receive quotes from the top insurers near you.

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