Most Affordable Car Insurance For Low Mileage Drivers
As a car owner, the insurance policy can benefit you in many ways. Be it financial protection, legal compliance, or lender requirements, car insurance is a crucial safeguard. It remains just as crucial for low mileage drivers as well. Out of different insurance companies in the country, some companies provide low mileage car insurance at cheap rates.
Low mileage car insurance is for those drivers who cover fewer miles every year than the average driver. If you use your vehicle mainly for short commutes, getting low mileage car insurance can be a good idea. Less driving also means a lower risk of accidents. That’s the reason why low mileage car insurance typically costs less than regular car insurance. If you are a low mileage driver, exploring car insurance options specifically tailored to your driving habits can lead to substantial cost savings.
Besides cost-saving, some other benefits are customized coverage and personalized attention. The insurer will come up with a custom coverage plan depending on your needs.
The rates for low mileage insurance vary significantly from one insurer to another. On average, low mileage drivers pay about $1,491 per year for car insurance. Some insurers, including USAA, State Farm, and Geico provide the cheapest low mileage auto insurance. Progressive and Nationwide match the national average. Farmers and Allstate charge more than the national average.
Besides the insurer, another aspect that affects low mileage car insurance prices is the state you are living in. Insurance regulations differ from one state to another. The same insurer can have different prices, depending on your state.
What Is Considered Low-Mileage For Car Insurance?
Low-mileage car insurance is a specialized insurance designed for drivers who drive a relatively small number of miles each year. The reason why this type of vehicle insurance exists is that when you drive less, the lower risk is associated with the insurer. As a result, insurers charge less premium for such car insurance.
Many people have very limited use. They use their vehicle mainly for short commutes, like commuting to and from the office or school. You don’t have to pay as high a premium as regular car insurance.
Now the question is what is considered low-mileage for car insurance? How one can avail car insurance low mileage discount?
Well, to get a low mileage auto insurance discount, you need to drive less than 7,500 or 8,000 miles per year. What exactly qualifies as low-mileage can vary between insurance companies and policies. There are also insurance companies that give low mileage discounts if you drive less than the national average, i.e., 13,500 miles per year.
Who May Actually Benefit With The Best Low Mileage Car Insurance Policy?
- Senior citizens – Retirees or people who work for less hours during post retirement life will be driving fewer number of miles annually. Drivers falling in this category can qualify for low mileage discount on auto insurance premium.
- Vehicle poolers – If you decide to share car ride with your colleagues for going to and coming back from your workplace, you will drive less miles. If so is your case then you may be eligible to receive car insurance mileage discount.
- Public transport – In case, you are using public transport systems in your city for plying to various destinations but own a car then your annual car mileage will be less. You can secure a premium discount in such a situation, just inquire.
- Student drivers – When you are expecting your teen back home from college for a vacation it is likely that he/she will be driving your car. In such a case, it is always desirable to buy a discounted very low mileage car insurance policy as no claims bonus on your existing coverage will not be adversely impacted. Remember, if you add your teen’s name to your current policy, the premium will go up drastically as young drivers are considered to be highly risky propositions to insure because of their lack of driving experience.
- Secondary cars – If you own another car that you don’t drive very often but only during weekends then you can get it insured with a low mileage auto insurance cover. Nevertheless, it is important that you notify your car insurance company that you have purchased or already have an extra vehicle which you won’t be driving much.
4 Vital Guidelines For Finding The Cheapest Low Mileage Car Insurance Quote
- Switch To A New Insurer – If your present car insurance provider doesn’t provide premium discount for driving fewer miles annually, think of switching over to a new insurer that uses mileage as one of the rating factors for calculating premium.
- Have Safe Driving Record – Most of the companies offer premium discount to defensive drivers and it could be one of the best ways to save money on premium.
- Changes To Car Coverage – You can consider raising deductible while keeping comprehensive as well as collision coverage features for lowering premium. However, if your car is more than 5 years old, you might not need full coverage as it is expensive. So, you can drop comprehensive and collision coverage features altogether.
- Buy A Telematics Car Policy – By buying a usage based or Telematics policy, you can qualify for a low mileage discount. Fewer miles mean lower probability of meeting with an accident and so, insurer will extend discount.
Who Should Get Low-Mileage Car Insurance?
Each person has different car usage, and note that low-mileage car insurance is not for everyone. It is designed for drivers that don’t use their vehicles frequently. It offers potential savings by adjusting insurance premiums based on the actual miles driven. Low-mileage car insurance is ideal for:
- Commuters who use public transportation
- Remote workers
- Occasional drivers
- Second car owners
- Retirees
On average, if you drive your car less than 7,500 to 8,000 miles a year, low-mileage insurance is for you. In fact, there are also insurance companies that offer discounts if you drive less than 13,500 miles per year, which is the national average.
If you drive under such a range, you are eligible to get discounts on your insurance. You just want to talk to your insurance company to know if you can get a discount. On the contrary, if you drive more than the national average, you need to go with the standard insurance plan.
Depending on how much you drive as well as how you drive, the right insurance plan can differ. As we have already seen, there are three options: low mileage discounts, pay per mile insurance, and usage-based insurance.
Let’s say, if you drive less than 26 miles per week, pay per mile insurance can be the right choice. Another thing is, if you are good at driving, you can consider usage-based insurance.
The exact policies of low mileage insurance differ from one company to another. Depending on your insurance provider, the eligibility criteria and offerings of low-mileage insurance may vary. Some insurers might have a specific threshold for what they consider “low mileage.” Therefore, compare quotes from different companies to find the best policy that suits your driving habits and needs.
Can Low-Mileage Drivers Save Money On Car Insurance?
The answer is yes! Low-mileage drivers can definitely save money on car insurance. For those who don’t drive a lot, low mileage car insurance is perfect for them. For such drivers, opting for traditional car insurance can be quite expensive.
Someone who doesn’t drive much doesn’t need to pay the same insurance premium as someone with a long commute. Furthermore, you will come across various types of cheap car insurance by mileage like low mileage car insurance, pay per mile car insurance, and usage based car insurance.
The reason why companies manage to offer insurance policies at amazing discounts is due to low risk factor. Since low-mileage drivers don’t drive as frequently as the average driver, the chances of accidents are quite less. This is what allows insurance companies to provide good discounts on car insurance.
Traditional car insurance policies set premiums based on various factors like the driver’s age, driving history, location, vehicle model, etc. However, these policies may not take into account the number of miles driven. For drivers who cover fewer miles each year, paying the same premium as someone with a long commute or frequent road trips may not be fair.
That’s when low mileage car insurance comes into the picture. This type of insurance is different in a way that it provides drivers the opportunity to pay premiums based on their actual mileage, and not the fixed amount.
To check if you qualify for low mileage discounts, what insurance companies do is they track your mileage using an onboard device or simply by odometer reading. Again, each insurer has different policies around how much mileage makes the driver eligible for discounts.
Getting Cheap Car Insurance By Mileage
If you don’t drive your vehicle much and want to save money on insurance, there are several ways you can do that. It is not a good idea to spend on regular car insurance when you don’t drive your car much.
Each car insurance company has different plans and policies. Let’s talk about three ways one can get auto insurance low mileage discount:
- Low mileage discounts – This is the best way to save some money on your vehicle insurance. If you drive below 7,500 or 8,000 miles per year, you can avail good discount on the insurance policy. In short, if you use your car mostly for short commutes, getting low mileage insurance is a good idea.When you drive less, the company can afford to give discounts since their risk gets minimized. But note that, not all companies offer low mileage insurance plans. Some companies that provide low mileage car insurance discounts include USAA, American Family Insurance, and PEMCO.
- Pay-per-mile insurance – This is another type of insurance ideal for people who drive. You might be a stay-at-home parent, commuter, retiree, or work-from-home professional. If you are driving less than average, there’s no need to spend on standard car insurance.As the name suggests, pay per mile insurance calculates the cost of insurance based on the actual number of miles driven. Under this insurance program, the rate depends on your car mileage. Insurance companies track mileage using a plug-in device or mobile app. Some companies offering pay per mile insurance include Metromile, Allstate, and Nationwide.
- Usage-based insurance – This is another popular type of car insurance. Unlike pay per mile insurance, you don’t get charged on per mile basis. Instead, the insurance company charges based on the driver’s behavior. If you think you have good driving skills, usage-based insurance can be the right fit for you.Under this insurance program, the insurance company tracks driving behaviors like:
- Speeding
- Acceleration
- Harsh braking
- Late night driving
- Phone usage while driving
- Mileage
Now, you might be wondering how does the company gather all this data? Well, there are several ways insurance companies collect data under UBI (usage-based insurance) plans. These include:
- Systems built into the car
- Using a mobile app
- The device plugged into the car’s on-board diagnostics
- Through the device installed on the car’s windshield or rear window
Why spend so much on car insurance when you can save? Spending so much on car insurance is not advisable especially when you don’t drive a lot. That’s when considering low mileage auto insurance can be a good idea. As we have seen, there are three ways one can get cheap auto insurance by mileage. Check out each insurance program and select one that’s best fit for you.
Here’s The 4 Step Process To Get Best Car Insurance For Low Mileage Driver
- Once you sign up for low mileage auto insurance policy with your chosen insurer and pay the premium, the insurance provider will install a “black box” type device in the car which is insured. It helps the insurer to monitor the actual number of miles being driven every year. Besides, your driving habits will also come under closer scrutiny of the insurer as you are going to be continuously tracked whenever you are on road.
- Insurer will extend special car insurance low mileage discount after monitoring whether you drive safely on road after a time period of 30 days. So, make sure that you obey traffic rules & regulations while driving on road and stay away from reckless driving practices. If you accumulate too many speeding tickets or violate traffic regulations then you will be deemed as a highly risky proposition and your auto insurance premiums may rise later on.
- The “black box” type device installed in the insured car provides vital data to insurers regarding drivers’ driving habits. Due to this, insurance providers get an updated picture at periodic intervals. As a result, they can check or review risks involved in providing coverage and even cancel coverage if the risks are too high. To ensure that you fall in line with insurers’ expectations, it is advisable to take up a defensive driver’s training course.
- When the low mileage car coverage nears the end of its term, the policy will be up for renewal. You can discontinue with the policy if you are not satisfied with its coverage contents and limits. The insurer will provide discount in any case and you can start looking for other cheaper alternatives for getting your vehicle insured. But just make sure that your driving slate is maintained clean and is free of accident record.
Here Are Important FAQs
As a general guideline, many insurance providers may consider mileage between 7,500 to 15,000 miles per year as low. If you drive fewer miles annually, you may be eligible for discounts or lower premiums since it reduces the risk of accidents and vehicle wear and tear.
Insurance companies may verify your annual mileage through various methods. Some common approaches include self-reporting, using your vehicle’s odometer reading, or utilizing telematics devices that monitor your driving habits.
To find the best car insurance for low mileage drivers, it’s essential to compare quotes from multiple insurance providers. Look for companies that offer discounts for infrequent drivers and consider policies that provide adequate coverage for your specific needs.
Yes, being a low mileage driver can often lead to potential savings on car insurance. Insurance companies may offer discounts or specialized policies tailored for drivers who cover fewer miles, as they are considered to have lower accident risks.
About The Author
Andy Walker is a freelance content writer who specializes in writing for insurance and finance related niches. He has years of experience in this field and has written extensively on a variety of topics. Andy’s work is always highly polished and well-researched, ensuring that his clients are always happy with the results.