State Farm does not specifically disclose what they consider to be low mileage. That being said, the company does offer a low mileage discount for customers who drive fewer than 7,500 miles per year.
You can get a low mileage discount from State Farm by simply providing your odometer information to a State Farm agent and making sure you drive less than 7,500 miles per year. Your discount will be applied to your policy as long as you keep your yearly mileage low.
To get the State Farm low mileage discount, a customer must drive fewer than 7,500 miles per year. Exactly how much State Farm’s low mileage discount can save a customer depends on many factors, like their address, car type, and driving history.
Provide odometer information to a State Farm agent, who will call to verify the reading. Agents call to verify odometer information when it’s time to renew a policy, and sometimes mid-term.
Confirm your low mileage discount is being applied to your bill. It will last as long as you continue to drive fewer than 7,500 miles annually.
How State Farm Verifies Low Mileage
To verify a customer meets the annual mileage requirement, a State Farm agent will contact the customer to collect their odometer information for the past year. State Farm will then continue to contact the customer periodically to collect the car’s odometer readings. If those readings show the customer has increased their driving to more than 7,500 miles per year, they will lose the discount.
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.… read full answer
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.
The best way to get cheaper car insurance is to compare quotes from multiple companies and then switch to whichever insurer offers the coverage you want at the cheapest rate. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record, and raising your credit score.… read full answer
10 Ways to Get Cheaper Car Insurance
1. Compare quotes every 6-12 months.
Every car insurance company calculates premiums slightly differently, so the quote you get from one company can easily be hundreds of dollars more expensive than another company’s quote. Getting quotes from multiple insurers every time you need to renew your policy can help you realize if you’re overpaying for the same amount of coverage.
2. Take advantage of discounts.
All major car insurance companies offer a variety of discounts, which can save drivers as much as 35% in some cases. For instance, many insurers offer multi-policy and multi-car discounts, as well as good student and good driver discounts, and more.
3. Increase your deductible.
Raising your deductible will lower your premium, though it’s important to choose a deductible amount that you can afford in an emergency. A car insurance deductible is an amount that you have to pay out of pocket before your insurer will cover the rest. Deductibles apply to several types of coverage, including collision and comprehensive insurance.
Usage-based insurance is a type of car insurance that calculates your premium based on your driving habits. Each company’s usage-based program varies, but most consider your total mileage, braking, acceleration, and speed. These programs are ideal for safe drivers, especially those who do not use their cars for long commutes or frequent trips.
6. Choose a car that is inexpensive to insure.
Cars that are particularly fast, powerful, and/or costly to repair are among the most expensive to insure. Insurers also charge higher premiums for cars that are more likely to be stolen. The next time you go car shopping, compare insurance quotes for different models in advance with this in mind. And if your premiums are prohibitively expensive now, consider trading in your vehicle for a car that is cheap to insure.
7. Take a defensive driving course.
In some states, insurance companies are required to give you a discount for completing a defensive driving course. Even where it isn't mandatory, insurers will sometimes provide a discount to encourage customers to improve their driving techniques.
If your insurer does not lower your premium just for taking a course, working on your driving skills will still pay off in the long run and help you keep your record clean. On that note, certain states also allow you to take a course in order to prevent driver’s license points from affecting your car insurance rates.
8. Consider your coverage types and amounts.
All the different types of car insurance can make it difficult to determine what exactly is worth paying for. At a minimum, you need to fulfill your state’s requirements and also purchase any coverage your lender or lessor requires. But beyond that, you can weigh whether each add-on coverage option is worth the price.
Moving violations like speeding tickets signal to your insurer that you are a risky driver, as do serious convictions like reckless driving. By driving safely, you can keep yourself safe and your premium low. If you have tickets or at-fault accidents on your driving record already, work on driving carefully from now on, since they will only affect your rate for a few years.
10. Check out local and regional companies.
Large car insurance companies spend billions on advertising every year, but smaller insurers may be able to provide the cheapest premiums in some cases. So, when you’re shopping around, make sure to compare quotes from companies of all sizes. You can use WalletHub’s cheap car insurance guide as a starting point. Just click on your state to compare the cheapest insurers.
Car insurance premiums are based on drivers’ individual risk factors as well as the coverage types and limits they choose. Check out WalletHub's full guide on the factors that affect car insurance rates for more information.
WalletHub Answers is a free service that helps consumers access financial information. Information on WalletHub Answers is provided “as is” and should not be considered financial, legal or investment advice. WalletHub is not a financial advisor, law firm, “lawyer referral service,” or a substitute for a financial advisor, attorney, or law firm. You may want to hire a professional before making any decision. WalletHub does not endorse any particular contributors and cannot guarantee the quality or reliability of any information posted. The helpfulness of a financial advisor's answer is not indicative of future advisor performance.
WalletHub members have a wealth of knowledge to share, and we encourage everyone to do so while respecting our content guidelines. This question was posted by WalletHub. Please keep in mind that editorial and user-generated content on this page is not reviewed or otherwise endorsed by any financial institution. In addition, it is not a financial institution’s responsibility to ensure all posts and questions are answered.
Ad Disclosure: Certain offers that appear on this site originate from paying advertisers, and this will be noted on an offer’s details page using the designation "Sponsored", where applicable. Advertising may impact how and where products appear on this site (including, for example, the order in which they appear). At WalletHub we try to present a wide array of offers, but our offers do not represent all financial services companies or products.