To get a low mileage discount, purchase an insurance policy from State Farm, USAA, or American Family, the three major insurers that advertise a low mileage discount. Customers can also get low mileage discounts from major insurers’ usage-based programs or from pay-per-mile companies like Metromile and Root. Some companies define low mileage as less than 12,000 miles a year, while others require 7,500 or less.
Of the 10 largest car insurance companies, State Farm, USAA, and American Family mention a low mileage discount on their websites, although none disclose the exact amount. However, in a 2018 study of five companies by the Consumer Federation of America, State Farm topped the list with a 3.2% average discount for every 5,000-mile reduction. The study used data from 12 cites and noted that Geico and Allstate charge 1.3% and 2.9% less on average per 5,000-mile decrease. However, Progressive and Farmers rates did not change at all based on mileage. In fact, Farmers says on its website that commute length does not affect its rates.
Since insurance is regulated by state, low mileage discounts can vary by location. Drivers in California usually receive a more substantial discount for low mileage driving, for example, since California law restricts the number of non-driving factors that insurers can use to set rates.
Other Discount Options for Low Mileage Drivers
If your standard insurance premium is still too high and you’re a low mileage driver, you can also see if your insurance company offers mileage or usage-based insurance. Programs like Allstate’s Milewise and Liberty Mutual’s Bymile charge based on how much you drive each day or month, meaning that your premium will vary. These programs are different from other usage-based insurance because they rely solely on mileage to calculate rates, rather than braking, driving times, and other factors.
Similarly, Root and Metromile, two smaller companies, offer insurance based on driving habits. Although they are not available in every state, these options might save you money if you drive very few miles. Metromile charges a flat monthly fee and then a few cents per mile. Root, on the other hand, uses an app to track mileage and other driving habits for a few weeks and then sets a rate based on your routine.
Finally, it’s important to note that an insurance company that offers a low mileage discount still might not be the best or cheapest insurance for you. Instead, it’s best to compare quotes from multiple insurance companies and investigate different types of insurance. In doing so, consider whether you are comfortable having your driving habits tracked in return for a discount.
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