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.
get a Free quoteLow-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.
The following groups of individuals can benefit with the best auto insurance for low mileage drivers at lowest premium online.
In any case, it has been revealed from a recent study that drivers who drive less than 5,000 miles annually pay around 8% less than drivers that drive 15,000 miles every year. On an average, drivers in America drive about 13,500 miles each year. it means a low mileage policy can save hundreds on premium.
To enhance your chances of securing a discounted auto insurance cover regardless of the number of miles that you will drive, you may take the below mentioned aspects into consideration.
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.
Most of the companies offer premium discount to defensive drivers and it could be one of the best ways to save money on premium.
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.
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.
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:
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.
get free quoteThe 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.
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:
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.
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.
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.